‎Aslak posts better profit margins in 2022 backed by high-return products: CEO

‎Aslak posts better profit margins in 2022 backed by high-return products: CEO

United Wire Factories Co. (Aslak) reported better profit margins in 2022, backed by its focus on high-return products that are not directly linked to the building and construction sector, which currently faces some challenges, CEO Nabil Alamir told Argaam in a phone call.

The building and construction industry slowed in the third and fourth quarters of 2022, Alamir explained, adding that it is linked to the housing sector whether through real estate developers or the housing ministry. The housing sector is suffering a deep recession.

The positive factor here is the momentum seen in the Saudi Vision 2030 and Riyadh city’s projects, Alamir added, expecting better demand this year.

The wire manufacturer’s revenue declined compared to Q4 2021, as the company did not focus on the construction sector products, which weighed on sales volume and value.

Aslak usually witnesses financial settlements in the fourth quarter of every year, the CEO noted, stressing that the 2022 results were better than the previous year, and came in slightly above full-year forecasts for total revenue and net profit.

He cited the seasonality of the company’s products, of which some have a higher impact in the second and third quarters of every year. Further, the seasonal nature of the