SACO online sales up 59% in 2025, expansion plans under review: CEO

Abdel-Salam Bdeir, CEO of Saudi Company for Hardware (SACO)

Abdel-Salam Bdeir, CEO of Saudi Company for Hardware (SACO), said the company’s online sales grew notably in 2025, leaping 59% compared with 2024.

In an interview with Argaam, Bdeir added that online sales rose 39% year-on-year (YoY) and 35% quarter-on-quarter (QoQ) in Q4 2025.

He noted that SACO is currently replacing its existing e-commerce platform with a new one designed to better meet customer needs. This comes in line with the company's transformation strategy aimed at delivering a more seamless and enhanced online shopping experience. The new platform is expected to be launched soon. As a result, the company is amortizing the book value of the current platform.

Regarding the financial results, the CEO said 2025 delivered strong performance, with sales rising 7.4%, gross profit increasing 14.3%, and finance costs declining 20.2% YoY.

The company reported a net profit of SAR 45.6 million in 2025, compared with a loss of SAR 14.1 million in the previous year.

Most product categories recorded notable growth, particularly home appliances, indoor furniture, televisions, toys, automotive accessories, and paints, the CEO noted. He added that local consumers have become more value-conscious, increasingly seeking promotions that provide the best quality at the best price.

SACO currently operates 32 branches across Saudi Arabia, Bdeir said, adding that the company is studying expansion plans for the coming periods in line with its strategy and based on market and customer requirements.

Commenting on market share, he said the company benefits from diversified product categories, with market share varying from one category to another, while maintaining a strong position in segments where it has competitive advantages.

The top executive explained that intensifying competition in the e-commerce and retail sector is mainly driven by cross-border online companies, whose sales were estimated at around SAR 65 billion in 2025. He noted that many of these foreign companies are not subject to the same regulatory frameworks applied to local firms.

Despite these challenges, SACO views competition as a catalyst for improvement, and the company is implementing strategic initiatives to strengthen its competitiveness, including developing its e-commerce platform in collaboration with a strategic partner.

Customers are expected to experience improvements in search and purchasing processes, faster delivery times, and an expanded product range, alongside enhanced operational efficiency and customer experience. The company also aims to offer high-quality products at competitive prices and distinctive services, reinforcing its market position and enabling it to benefit from growth opportunities in Saudi Arabia’s retail sector.

Bdeir noted that after suspending dividend distributions for more than five years, the board of directors decided to distribute dividends of SAR 0.25 per share for 2025, adding that the company will continue to improve its performance and profitability to benefit shareholders.

He emphasized that the company’s management will continue implementing its strategy to provide the best products, prices, and services to customers, while working on initiatives to enhance performance and profitability.

According to data compiled by Argaam, SACO reported a net profit of SAR 45.6 million for 2025, against a loss of SAR 14.1 million in 2024. The company recorded a net loss of SAR 3.9 million in the fourth quarter, mainly due to amortization expenses.