Thob Al Aseel's H1 positive performance driven by stable trade conditions: CEO

Ahmed Al-Sultan, CEO Thob Al Aseel Co.

The positive financial and operational results of Thob Al Aseel Co. for the first half of 2023 were driven by stable trade conditions, said CEO Ahmed Al-Sultan, adding that this boosted the company's topline and net income.

In an interview with Argaam, Al-Sultan indicated that the increase in the number of Hajj and Umrah pilgrims coming from outside the Kingdom helped strengthen sales in the Western Province, which represented 31% of the company's total sales.

The credit impairment in H1 2023 was due to the improvement in collection rates from customers, an increase of 17% year-on-year (YoY), he added.

The CEO also explained that the company's decision to appoint Al Rajhi Capital as a market maker for its stock aims to support trading liquidity, reduce price fluctuations, and maintain balance between bids and offers, so that offers are made at all high and low points.

He pointed out that the stock split rendered the company’s stock price more attractive, as it enabled a larger number of traders to buy the stock, which would boost the liquidity volume.

Al-Sultan expects Thob Al Aseel to continue its positive growth in Q3 2023, saying that a plan has been put in place to boost sales, benefiting from the expected demand with the back-to-school season.

Thob Al Aseel posted SAR 60.3 million in net profit for H1 2023, an increase of 37% from SAR 44 million in the same period a year earlier. Q2 profit amounted to SAR 32.5 million, according to Argaam's data.