Zahrat Al Waha likely to maintain satisfactory H2 earnings despite regional tensions: Chairman

Ahmed Al-Theyab, Chairman of Zahrat Al Waha for Trading Co.

Ahmed Al-Theyab, Chairman of Zahrat Al Waha for Trading Co., said geopolitical and security developments have increased volatility in raw material prices, raised shipping costs and affected the availability of certain raw materials, resulting in higher production costs and selling prices.

In an interview with Argaam, Al-Theyab said the company has strengthened its risk management measures by diversifying supply sources both locally and internationally, managing inventory levels efficiently to meet customer demand, and aligning its pricing policies with market conditions.

Commenting on the company's financial results, Al-Theyab said profit growth was driven by efficient inventory and supply chain management, which enabled the company to secure raw materials in the required quantities at competitive prices despite challenging market conditions. He added that the company's plan to address current market developments remains on track.

He noted that higher selling prices were primarily linked to increased raw material costs, which are a key component of the company's pricing mechanism, while its marketing initiatives helped mitigate market challenges and preserve market share.

Regarding the investment portfolio, Al-Theyab noted it is managed by a specialized investment manager and has delivered satisfactory performance despite market volatility. He added that the company currently sees no need to divest the portfolio, while any new investments will be subject to the portfolio manager's recommendations to support performance and returns.

On dividend distributions, he emphasized that resuming dividends remains under review and will depend on business performance and available liquidity, balancing shareholder returns with maintaining sufficient liquidity to support operations and growth.

Regarding acquisitions and expansion, the Chairman indicated that the company is not currently evaluating any acquisition opportunities but continues to assess opportunities that align with its strategy, while also studying expansion projects that support growth and enhance operational efficiency.

He expects current market challenges to continue affecting the business to varying degrees during the second half of the year. However, he said the company is working to mitigate their impact, ensure business continuity, maintain operational efficiency and preserve a satisfactory level of profitability in H2 2026.

According to Argaam data, Zahrat Al Waha reported a net profit of SAR 30.6 million for H1 2026, versus a net loss of SAR 7.9 million in H1 2025. Q2 2026 net profit reached SAR 21.9 million.