SACO on track to turn profitable soon: CEO

SACO’s CEO Abdel-Salam Bdeir 

Saudi Company for Hardware (SACO) is working to turn profitable soon and log better financials in the future, CEO Abdel-Salam Bdeir told Argaam in a phone call.

SACO was able to improve its final goods inventory level through effective inventory management and is still working to achieve better levels in the coming periods, he explained.

Bdeir stated that SACO attained progress on several levels in line with the strategic transformation plan aimed at boosting the company’s results. Accordingly, the operating loss was reduced by about SAR 30 million during Q3 2023, compared to the same period of the previous year.

The drop in SACO’s operating costs was attributed to the signing of new supplier contracts and effective inventory management. This is besides rationalizing and cutting costs and expense, strengthening human capital in management and creativity, in addition to developing customer service.

The company is currently focusing its efforts on implementing the strategic transformation plan. Bdeir pointed out that no new branches were opened during Q3 2023, with no closures cited during the same period.

A total of two branches were closed between Q4 2022-Q1 2023, which did not entail any significant financial impact.

According to Argaam data, SACO recorded losses worth SAR 44.7 million by the end of the first nine months of 2023. The third-quarter losses amounted to about SAR 12.2 million.