United Wire Factories Co. (Aslak) posted profit growth in the second quarter of 2021 despite the slowdown in the construction and building materials business due to seasonality, as the period coincided with Ramadan and Eid al-Fitr, Chief Executive Officer (CEO) Nabil Alamir told Argaam in an exclusive.
He added that the diversity of products gives Aslak a competitive advantage in different seasons, helping the company maintain high production levels and provide raw materials at better prices in Q2 2021.
The firm seeks to continue applying the same methodology in the third quarter of 2021.
Commenting on the decline in sales by 4% in Q2 2021, compared to the previous quarter, the CEO said it was expected due to seasonality.
He also expected the sector to witness an improvement in Q3 2021, as the construction business picks up pace after Eid al-Adha vacation and the onset of winter season. In addition, the company is likely to benefit from the change in raw material prices and the recovery of the sector to record better margins and returns.
"There are projects under discussion currently, such as renewing production lines and boosting the production capacity of existing factories. Expansion is always our goal, and we seek to foray in all regions of the Kingdom," the official said, when asked about the company's expansion plans.
He added that the company studies the market carefully. "There are available stakes in the market, and the firm can acquire them, thanks to its experiences as well as financial capabilities and productivity that give us the priority for acquisition."
The Tadawul-listed firm reported a net profit after Zakat and tax of SAR 30.2 million for the first half of 2021, a 10.6% increase from SAR 27.3 million in the same period last year.
Meanwhile, the company reported a net profit after Zakat and tax of SAR 14.1 million for Q2 2021, a 16% year-on-year (YoY) increase, according to data compiled by Argaam.
Comments
{{DisplayName}}
{{ElapsedTime}}