Zahrat Al Waha says corrective plan restored momentum; market share intact

Ahmed Al-Theyab, Chairman of Zahrat Al Waha for Trading Co., stated that the corrective measures implemented by the company in the second quarter have returned performance to a positive path.

He expects 2025 results to improve as the plan continues and operating efficiency rises, in addition to the improving performance of the printing, packaging, and labeling segment, which the company began operating at the start of the year.

In a phone interview, Al-Theyab told Argaam that the decline in third-quarter revenue was due to lower raw material prices in the preform and caps segments. He added that sales volumes were not affected during the period, which reflects the company’s success in maintaining its market share, operating rates, and cost levels.

He said profit growth in the third quarter was driven by stable raw material prices and lower financing costs, which helped improve margins and reduce cost of goods sold.

The chairman attributed the SAR 1.87 million loss recorded in the first nine months to the impact of the first quarter, as the cost of goods sold increased due to lower raw material prices and the company holding high-cost inventories, in addition to higher transportation expenses affected by fuel prices.

Al-Theyab noted that raw material prices in the plastic bottle and preform segments were relatively stable in the second and third quarters of the year, which supported stable pricing plans and improved operating performance.

On demand trends, he said the market is moving toward reducing bottle weights to lower operating costs for water producers, noting that despite that, produced volumes continue to increase within the company’s target market.

On the purpose behind splitting the stock’s nominal value, Al-Theyab said the aim is to increase the number of shares available for trading and broaden the shareholder base, which would enhance the stock’s liquidity and investment appeal by facilitating buying and selling in the market.

According to Argaam data, Zahrat Al Waha recorded a loss of SAR 1.9 million in the first nine months of 2025, compared with a profit of SAR 6.2 million in the same period of 2024. Third-quarter profit stood at SAR 6 million.