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Ahmed Hmod Al Theyab, chairman at Zahrat Al Waha For Trading Co.
Zahrat Al Waha for Trading Co.’s investment portfolio in the Saudi market succeeded in diversifying the company’s income sources and increasing its profitability, contributing 20% to net profit in the first quarter of 2021, Chairman Ahmed Al Theyab told Argaam in a telephone interview.
The company seeks to maximize this profitability. To this extent, Zahrat Al Waha is working as part of an expansion plan developed by its management to diversify its sources of income, aggrandize profitability and achieve the goals of shareholders throughout the year, Al Theyab said, noting that this plan reaped fruits according to its schedule.
During Q1 2021, amid a strong local and global competition, the company sought to maintain its market share, and further increasing it in the coming periods while opening up new overseas markets.
Al Theyab pointed out that the company aims to grow its sales and market share both in the local and export markets.
With the return to normal economic activities and as the summer season begins, sales demand is expected to increase, Al Theyab said, adding “this is our goal and we are seeking to achieve it during the current quarter, which poses a strong challenge for us.”
On the expansion plan for the first half of this year, he explained that a new production line for plastic caps was added. Pilot production has also started in preparation for the start-up of commercial operations. The new line will contribute to boosting production capacity by 12% per annum in order to meet the increase in demand for plastic caps.
Zahrat Al Waha net profit for Q1 2021 rose 57% year-on-year to SAR 20.3 million from SAR 12.9 million in Q1 2020.
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