Baazeem to focus on local production to offset customs duties: chairman

Baazeem Trading Co. will focus on attracting international agencies, developing Baazeem-branded products and local manufacturing to ensure superior quality, along with cushioning against higher customs duties, chairman Salem Baazeem told Argaam on Tuesday.

“Our strategy is also aimed at listing the company’s shares on Tadawul. The company has strong confidence in maintaining its performance and achieving targets, thanks to adopting the governance standards stated by the Capital Market Authority,” the chairman said.

Baazeem, which is listed on Nomu Parallel Market, reported a 2 percent year-on-year (YoY) growth in H1 2017 net profit to SAR 16.9 million.

The chairman said the company maintained profitability despite lower sales in the first half, which will in turn achieve shareholders’ interest and help the company proceed with its plans.

The firm has relied on its negotiating ability and strategic relations with suppliers to agree on better terms for marketing its brands.

The decline in the first-half sales, however, was attributed to clients’ prudent purchasing policies and plans to cut inventories.

The company will continue paying annual dividends to shareholders, Baazeem added.

The company also benefited from listing shares on Nomu to develop its infrastructure and defend market share.