Sales orders, strong demand likely to spur Zamil’s Q2 growth: CEO

Zamil Industrial Investment Co.’s expanding sales orders and ongoing strong demand for its integrated solutions are seen to underpin its positive momentum through the second quarter of this year, paired with firm commitment to a profitable growth approach, said CEO Ahmed Zaatari.

 

In an interview with Argaam, Zaatari pointed to Zamil’s robust financial performance in Q1 2025. Key drivers included revenue growth and improved gross profit margins across all four business segments, which helped boost production capacity and factory efficiency.

 

Demand for the company’s products and services, according to the CEO, remains robust, with all four segments recording double-digit hikes in revenues and gross income. Further, sales orders maintained their upward trajectory, underscoring Zamil’s market growth and diversified customer base.

 

Moreover, the company’s operating profit margin rose to 4.6% in Q1 2025, compared to 1.6% in Q1 2024, reflecting significant improvement in operational efficiency, he added.

 

“We are satisfied with the financial performance for Q1 2025, which aligns with our strategic direction — adopted since 2024 — towards profitable growth. This affirms the company’s aptitude for sustainable growth and transforming market opportunities into added value for both shareholders and the national economy,” the CEO said.

 

Additionally, strengthening working capital is a key pillar in the company’s operational strategy. Efforts are underway to accelerate client collections, while reducing inventory levels without affecting raw materials’ availability or production plans. This is in addition to negotiating more favorable payment terms with suppliers and extending credit terms to customers in order to maintain balance between growth and liquidity, the top executive further stated.

 

He also pointed out that these measures have begun to yield positive results, represented in lower inventory levels and receivables despite ongoing revenue growth.

 

As for Zamil’s plan to amortize accumulated losses, Zaatari confirmed that the company managed to slash accumulated losses by 46% in the first quarter of 2025, compared to the same period last year.

 

“We will continue to trim accumulated losses through sustained profitability, backed by improved margins and lower financing costs,” he added.

 

According to Argaam’s data, Zamil’s profit rose to SAR 21.8 million by the end of Q1 2025, compared to SAR 5.4 million in Q1 2024.