Naseej logs profits for 2 straight quarters after recurring losses, outlook positive: Chairman

Wael Al Rashid, Chairman of Naseej International Trading Co.  

Naseej International Trading Co. was able to achieve positive results for two consecutive quarters after the successive losses in recent years, the company’s Chairman Wael Al Rashid told Argaam in phone call.

Naseej International Trading Co. achieved positive results in two consecutive quarters following successive losses in the recent years, Chairman Wael Al Rashid told Argaam in a phone call.

The improvement in results was mainly due to the positive impact of the recent capital hike, which officially reflected on the company's accounts in December 2021, the Chairman indicated.

He also stated that one month was insufficient to secure raw materials and pay suppliers' dues as well as other obligations. Therefore, the benefits started to show in Q1 and Q2 this year.

Naseej adopted a strict cost-cutting and expenses control policy, which re-boosted the competitiveness of the company. Meanwhile, the company focused on meeting the customers’ needs through launching new lines and distinctive designs that keep pace with the aspirations and taste of the consumer, Al Rashid noted.

On the risks of returning to losses that lead to diminishing capital, Al Rashid said that based on the assessment of the current situation, the board of directors does not foresee the need to reduce capital in the future.

He predicted that the company's profitability, despite the difficult competition, may fluctuate in line with seasonal factors and regional or global variables.

Al Rashid added that he has a positive outlook, particularly with national incentives and the announcement of major projects.

Naseej swung to a net profit after Zakat and tax of SAR 12 million in the first six months of 2022, from a net loss of SAR 10.3 million in the year-earlier period, Argaam reported.