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![video link button](/Content/en/images/attachement-icon.jpg)
Ahmed Al Theyab, Chairman of Zahrat Al Waha for Trading Co.
Zahrat Al Waha for Trading Co. is always seeking to diversify its income sources and introduce new activities to boost financial position and profitability, Board Chairman, Ahmed Al Theyab, told Argaam in a telephone interview.
The company is planning to use the available cash in investment portfolios, managed by specialized firms, to diversify its income sources. The impact of this investment showed earlier this year, as Zahrat Al Waha reported investment profits at fair value of SAR 7.65 million, or 21%, of H1 2021 total profit.
“The significant growth in Zahrat Al Waha’s profit was driven by better management of its sources amid market recovery from the COVID-19 repercussions. We worked on managing and minimizing all costs, without affecting the quality of products,” Al Theyab explained.
Moreover, the company worked on inventory management to slash its costs, benefiting from its advanced storage systems and capabilities. Zahrat Al Waha also focused on the optimum utilization of all plants, reducing the cost of sold goods. Accordingly, the company grew its market share locally and abroad, Al Theyab concluded.
Zahrat Al Waha reported a net profit after Zakat and tax of SAR 36.6 million for the first half of 2021, an 87% increase from SAR 19.5 million in the year-ago period, Argaam reported.
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