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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. will expand its business segments to include printing and packaging materials, Chairman Ahmed Al-Theyab told Argaam.
He added that the operation and commercial sale of the first production line is scheduled to begin by the end of Q2 2024, while operations of the other lines will follow consecutively.
The goal of the new segment is to diversify sources of income, which will reflect positively on the company’s profit, enhance its financial solvency, and benefit shareholders, the Chairman said.
Al-Theyab indicated that the plastic performs production line will start operations and commercial sales in Q2 2024.
The company's market share of plastic preforms segment recorded growth, with sales rising 16.65% from 6.5 billion pieces in 2022 to 7.6 billion in 2023. Sales in the plastic caps segment, which also saw a rise in the company’s market share, reached 7.4 billion pieces in 2023, up 31%, compared to about 6.8 billion in 2022.
Al-Theyab also said that Zahrat Al Waha posted higher profit in 2023, especially in the fourth quarter, thanks to a rise in sales by 9.62% compared to a year earlier. He stated that the decline in sales value was due to lower raw material prices, which is the primary driver of selling prices.
Prices of raw materials were steady last year, but were down 16% compared to 2022, which bolstered the company’s profitability, the Chairman said.
The company is actively seeking entry into new markets as it strives to boost its share in the local market.
Zahrat Al Waha plans to export to central and south African markets. Export sales accounted for 4% of total sales value in Q4 2023, while sales to the local market reached 15% of the total, he added.
The company reported a net profit of SAR 33.9 million in 2023, more than double from SAR 15.7 million a year earlier. Q4 net profit amounted to SAR 17 million, data available to Argaam showed.
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