RIYADH: The Saudi United Wire Factories Co., best known as Aslak, expects its financial performance to improve further in the second quarter after it posted the highest quarterly profit since 2015, the CEO Nabil Al-Amir told Argaam.
Profit of Aslak rose 61 percent to SR26 million ($6.9 million) in the first quarter of 2022, compared to SR16.1 million recorded for the same period last year, according to a bourse filing.
The record-high profit in the first quarter was due to a jump of 32 percent in sales as well as selling margins, which were driven by a solid market price, according to Al-Amir.
He said Aslak expects robust performance for the second quarter, supported by the economy, the summer holiday, and the positive momentum in building and construction projects.
Al-Amir also pointed out that the ongoing war between Russia and Ukraine affected the supply of raw materials, and alternative materials became more expensive.
He added that Aslak secures material from domestic sources, such as Saudi Iron and Steel Co., known as Hadeed, a subsidiary of SABIC.
In regard to the potential stake acquisition in Thamar Nutrition and Subsistence Co., he said: “Overall, the situation is positive, and we are in the process of completing the required due diligence.”