Latest news with #ACICOGroup
Zawya
09-08-2025
- Business
- Zawya
ACICO reports net profit of KD 8.3mln and operating profit of KD 3.5mln in Q2 2025
Maintains stable prices and supports the local market amid operational developments Kuwait: ACICO Group announced its financial results for the second quarter of 2025, reporting a net profit of KD 8.3 million, marking a major turnaround from the net loss of KD 2.3 million recorded during the same period in 2024. The results reflect the company's stringent cost control policy, enhanced operational efficiency, continued progress in implementing its financial restructuring plan and its operational strength that positions it as a partner of choice in key infrastructure projects in Kuwait and the region. Commenting on the results, Chairman of the Board Mr. Emad Abdullah Al Essa stated: 'We are entering a new chapter that paves the way for strengthening our financial position in line with our solid operational track record and sector-wide achievements. We have built a strong foundation rooted in operational efficiency, prudent management and a clear commitment to sustainable growth, ensuring long-term value for our shareholders, customers and the community. With confidence, we are moving forward toward achieving financial and operational balance that reinforces ACICO's position as a leading national company aligned with Kuwait's and the region's development ambitions.' Sales from industrial operations grew by 7.9% to KD 35.6 million. Gross profit margin improved from 17% to 18%, and selling, general and administrative expenses remained flat year on year. Despite these improvements, the company recorded an operating profit of KD 3.5 million, compared to KD 5 million in Q2 2024. This variance is primarily due to the exclusion of real estate revenues following the divestment of certain assets as part of the company's restructuring efforts, which have significantly reduced total liabilities and interest expenses from KD 8 million to KD 3.7 million. Restructuring Enhances Financial Position During the quarter, ACICO finalized a major debt restructuring agreement with a creditor bank for a total liability of KD 128.5 million. The agreement, which aligns with the Group's approved financial restructuring plan, resulted in a non-recurring gain of KD 3.5 million and a corresponding increase in shareholders' equity. The agreement included a multi-phase implementation plan, comprising the transfer of a property worth KD 60 million, a partial cash repayment of KD 2 million, direct debt discounts, and the conversion of part of the debt into preferred shares. The Group reaffirmed that this agreement is a continuation of its comprehensive financial restructuring strategy endorsed by the Board of Directors, aimed at strengthening financial efficiency, fortifying the balance sheet, and reinforcing ACICO's position as a leading regional player.
Zawya
18-05-2025
- Business
- Zawya
ACICO registers KD 6.2mln net profit and KD 2.3mln operating profit in Q1 2025
Strong operational and financial progress highlights success of group strategy Kuwait: ACICO Group today announced its financial results for the first quarter of 2025, recording a net profit of KD 6.2 million, a significant turnaround compared to a net loss of KD 0.77 million for the same period in 2024. This improvement reflects the Group's continued success in strengthening its financial position and expanding its presence in local and regional markets, affirming the effectiveness of the Board of Directors' strategy in driving sustainable growth and positive performance. Significant Financial Improvement ACICO successfully reduced its accumulated losses to KD 17.7 million as of March 31, 2025, down from KD 23.9 million as of December 31, 2024. This achievement comes as a result of the decisive measures implemented as part of the Group's transformation plan, approved by the Board of Directors. Commenting on the results, Group Chairman Mr. Emad Abdullah Al-Issa said: 'These results reaffirm the success of the company's strategy which is today tangible at the level of operational efficiency, financial restructuring and growing confidence in ACICO's products and services. The Group remains committed to supporting key developments, commercial and residential projects and is proud to play a leading role in advancing the industrial and construction sectors in Kuwait and across the Gulf.' He added: 'Our aim is to maximize shareholder value while preserving our leadership position in the regional industrial and construction sectors. We are equally committed to our role within our society and the environment. Through our marketing and CSR initiatives, we support Kuwait Vision 2035 as well as sustainable development, firmly believing that our impact goes beyond commercial growth to include empowering national talent and strengthening integration between the public and private sectors.' Strong Performance and Continued Expansion ACICO continued to deliver high efficiency in its operations during the quarter, signing new turnkey construction contracts with homeowners in newly developed residential areas. The Group also expanded its involvement in strategic infrastructure, industrial and real estate projects. Sustainable Growth and Shareholder Value ACICO remains committed to executing its comprehensive strategic plan, focused on sustainable growth, operational efficiency, and innovation in its product and service offerings. The Group continues to strengthen strategic partnerships and expand its regional footprint, reinforcing its position as a national industrial and construction leader with regional impact. Ends
Zawya
27-03-2025
- Business
- Zawya
ACICO sees a 12% increase in gross profit from, and net operating profit up 35% to KD 7.0mln in 2024
Continued financial stability and operational improvements position the Group for future growth Kuwait: ACICO Group today announced its financial results for the fiscal year ended December 31, 2024, demonstrating resilient operational performance amidst ongoing strategic financial restructuring aimed at enhancing long-term profitability and sustainable growth. The Group maintained strong operational results, with gross profit from operations reaching KD 20.9 million in 2024, compared to KD 18.7 million in 2023, excluding the effect of changes in the fair value of investment properties. This represents a 12% year-on-year growth in gross profit, despite a decline in operating revenue, highlighting improved operational efficiency. Net operating profit reached KD 7.0 million in 2024, up from KD 5.2 million in 2023, excluding the effect of changes in the fair value of investment properties, representing a 35% year-on-year growth. By the end of the year, ACICO reported a net loss of KD 11 million for 2024, compared to a net loss of KD 6 million in 2023, primarily due to a goodwill impairment of KD 4.5 million. Commenting on the results, Group Chairman Mr. Emad Abdullah Al-Issa stated: 'ACICO Group continues its journey toward sustainable growth and stronger positioning in its sectors of operations in both local and regional markets. This is made possible by a clear restructuring strategy and significant improvements in operational efficiency. The efforts initiated by the Board of Directors in early 2023 have already resulted in notable gains, enabling the company to meet its obligations, explore new markets and expand into new sectors. 'We are now focused on product and service innovation, serving individuals, companies and government entities, while investing in our integrated construction and industrial solutions to support national development projects.' Al-Issa reaffirmed the Group's commitment to working closely with financial institutions to complete the remaining phases of the financial restructuring plan, after successfully settling several major debts during 2024. These efforts enhance the company's flexibility in debt servicing, strengthen its financial stability, and align with its vision of long-term profitability and stakeholder value protection. He added: 'ACICO's success in improving operating profitability and increasing market share places it in a strong competitive position. We remain committed to delivering on the promises made to our shareholders and safeguarding ACICO's legacy as a leader in the building materials sector across Kuwait and the wider GCC region. These achievements form a solid foundation for continued growth and expansion.' Debt Settlements and Financial Restructuring As part of the Group's financial restructuring strategy, key agreements were concluded and finalized in 2024: Debt Settlement #1: An agreement with a creditor bank to settle all outstanding debt by paying 65% of the total amount (principal, interest and fees), equivalent to KD 3.7 million, while being released from the remaining 35%. Debt Settlement #2: An agreement to settle outstanding debt KD 35.8 million in full through the sale of a company-owned asset, generating a profit of KD 2.4 million. These settlements reinforce the success of the Group's restructuring strategy and its commitment to stakeholder value creation. Strengthening Financial Position Total assets amounted to KD 315 million as of December 31, 2024, compared to KD 358 million in 2023. The decline in total assets reflects a strategic realignment of assets and prudent capital management, including the exit of certain assets and debt settlements as part of the ongoing debt restructuring program. Total equity declined to KD 27.8 million in 2024 from KD 38.5 million in 2023, impacted by the year's net loss including impairment of Goodwill but still ensuring financial stability and flexibility. Operational Performance Highlights The Group executed supply, installation, and construction work across multiple major development projects that advanced into execution during the year. ACICO also signed new contracts for turnkey home construction in Kuwait, particularly in emerging residential areas, highlighting its robust capabilities and market leadership. Construction and Industrial Projects Gross profit improved by 12% in the Industrial and Construction sectors with a successful implementation of cost optimization strategies. Industrial sales remained solid at KD 66.6 million, compared to KD 68.2 million in 2023, despite challenging market conditions. Cost of goods sold in the Industrial sector decreased to KD 54.3 million from KD 57.2 million in the prior year, underscoring ongoing improvements in operational efficiency. Real Estate Sector The Group's real estate sector demonstrated strong performance, increasing net profit to KD 8.5 million in 2024 from KD 7.7 million in 2023. This growth reflects sustained demand and strategic management within the sector.
Zawya
02-03-2025
- Business
- Zawya
ACICO Academy celebrates graduation of its inaugural cohort
Kuwait: ACICO Group is proud to announce the successful graduation of the first cohort of the ACICO Academy in a ceremony that was held at the company's headquarters and marked the conclusion of an intensive four-month program aimed at empowering and developing Kuwait's brightest young talents. The ACICO Academy was conceptualized as part of ACICO's ongoing commitment to attract ambitious local talent and give back to the community by equipping youth with the tools and knowledge they need to excel in the private sector. The inaugural program, which began in October 2024 and concluded in January 2025, saw 30 carefully selected participants embark on a journey of professional and personal growth. Over the course of the program, the young employees engaged in a blend of business knowledge sessions, practical training, and a final business project. This structured approach ensured that participants gained the essential skills and hands-on experience needed for their roles within ACICO. Out of the 30 participants, 26 successfully completed the program, a testament to the academy's rigorous selection and training standards, which targeted motivated individuals ready to thrive in the private sector. Eng. Ahmad Rajab, Senior Group Director - HR & Administration at ACICO, addressed the graduates during the ceremony, saying: "Today, we celebrate not just the conclusion of a program, but the beginning of a promising journey for these exceptional young talents. ACICO Academy reflects our dedication to fostering the next generation of professionals, and we are immensely proud of what our graduates have accomplished. Their success represents the future of ACICO and the broader private sector in Kuwait." The event was attended by ACICO's Chairman of the Board, top management, representatives from key partners, including Injaz, the Ministry of Youth, and the Public Authority of Manpower, as well as instructors, trainers, and proud families of the graduates. This first edition of ACICO Academy marks a significant milestone in ACICO's efforts to empower local talent and contribute to the development of Kuwait's workforce. The academy not only highlights ACICO's leadership in the private sector but also reinforces its commitment to investing in the future of the community. 'We look forward at ACICO Group to continuing the success of the ACICO Academy and expanding its impact in the years to come,' Rajab added. "The academy reflects our values of innovation, development, and commitment to our Kuwaiti community as part of our social responsibility by providing a robust foundation for graduates to start their careers. We look forward to welcoming the next generations and are confident that the program will play a critical role in the development of our beloved nation.'
