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Nabil Al-Amir, CEO of United Wire Factories Co. (Aslak)
United Wire Factories Co. (Aslak) posted good financial results in Q3 2024, despite the current economic changes such as slow demand and tighter competition, CEO Nabil Al-Amir told Argaam.
Aslak maintained healthy profit margins despite a decline in sales, as 9M 2024 margins grew year-on-year (YoY), Al-Amir added.
Lower revenue was driven by weak demand in most of the company’s markets, despite slight improvement in some segments. Additionally, competitive pricing weighed directly on profit margins, he said.
Talking about the performance of the construction industry during Q3 2024, Al-Amir noted that demand focused on rebar products but remained below the available production capacities of local manufacturers.
Aslak supports this segment through commercial activities in addition to manufacturing products that meet the needs of construction and contracting companies, and real estate developers.
Al-Amir noted that the company invested more than SAR 25 million this year as part of its plan to align products with the growing needs of the construction sector and to provide specialized products tailored to current construction projects.
Aslak expanded its product base aimed at the construction sector and launched new production lines to boost presence in this strategic market.
Al-Amir expected the company to continue delivering improved performance in Q4 2024, supported by a series of positive developments expected to stimulate the markets.
Aslak reported a net profit of SAR 14.3 million in the first nine months of 2024, compared to SAR 12.1 million in the year-earlier period. Q3 earnings rose 82% YoY to SAR 4 million.
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