‎Aslak posts highest quarterly net profit since 2015, expects positive performance in Q2 2022: CEO

‎Aslak posts highest quarterly net profit since 2015, expects positive performance in Q2 2022: CEO

United Wire Factories Co. (Aslak) reported improved selling margins for the first quarter of 2022, leading the company to record the highest quarterly profit since 2015, CEO Nabil Alamir told Argaam in a phone interview.

Sales jumped nearly 32% year-on-year in Q1 2022, Alamir noted, adding that selling margins improved, thanks to excellent market prices that contributed to significantly absorbing fixed costs.

Aslak is on an “upward curve” following a decline in sales and revenue to the minimum limit in 2018.

Speaking of the Russian-Ukrainian war, Alamir said that Aslak secures raw materials from domestic sources, namely Saudi Iron and Steel Co. (Hadeed), an affiliate of SABIC. The war impacted supply, while prices of alternatives went higher.

Production inputs, such as zinc, hit unprecedented levels and are still on the rise. This in turn affected the cost of production inputs and had a direct impact on selling prices, in addition to supply chain disruptions. Demand increased amid expectations and customers’ caution in order to avoid any future hikes, Alamir explained.

Elsewhere, the top executive elaborated that the construction sector performance was still weak, as evidenced by sales volumes, cement sales, and financing size for retail customers in the residential and real estate sector, which witnessed