Thob Al Aseel Q2 net profit up 21% excluding impact from medical equipment sales: CEO

CEO Ahmed Al-Sultan

Thob Al Aseel Co.’s Q2 2021 sales and net profit rose 25.5% and 20.9%, respectively, after excluding the impact of medical equipment supplies, Chief Executive Officer (CEO) Ahmed Al-Sultan told Argaam.

He added that sales of major products contributed the largest share to the Q2 2021 financial results.

However, the seasonality factors during Ramadan weighed on the company’s sales growth in Q2 2021, compared to a quarter earlier, as seasonal factors usually impact its activities and revenues during the year, Al-Sultan said.

When asked about his expectation of the company’s performance in Q3 2021, the CEO said that Thob Al Aseel seeks to implement the previously set plans for sales growth and capitalize on government efforts to distribute vaccines that aim to bring back normalcy.

The company’s capital hike will help expand its operations and maintain strong solvency, Al-Sultan said, adding that Thob Al Aseel is currently in the process of obtaining the required approvals.

Regarding the plans of medical equipment procurement, the CEO indicated that the company is studying and assessing market needs and its ability to provide them. He noted that this will help the firm enter into new agreements that fulfil market needs.

Thob Al Aseel posted SAR 34.5 million net profit for Q2 2021, a decline of 31%, from SAR 52.2 million a year earlier.

The company’s board of directors recommended today, July 15, a capital increase to SAR 400 million from SAR 300 million, via the distribution of bonus shares at 33.33% (one share for every three shares owned).