Latest news with #Aslak
Argaam
11-08-2025
- Business
- Argaam
Aslak faced fierce price war in Q2 2025, sees gradual demand recovery: CEO
United Wire Factories Co. (Aslak) faced a sharp pricing competition in Q2 2025 amid weak demand, which prompted producers to cut prices to protect their market shares, CEO Nabil Al-Amir told Argaam. In Q2 2025, sales volumes rose by about 40% year-on-year (YoY), but the average gross profit margin fell 31%, leading to a 55% drop in the three-month net income. According to the CEO, Aslak witnessed higher sales in the second quarter of this year on elevated sales volumes. This was fueled by stronger marketing efforts and competitiveness. However, demand stayed relatively weak, demonstrating no signs of a material rebound. Elsewhere, capacity utilization rates improved in Q2 2025 and are still on the rise, thanks to higher sales volumes. Further, efforts to maximize utilization rates are ongoing. Al-Amir expects demand to recover gradually by late Q3 2025, driven by the end of summer holidays and the start of work on some mega projects. This is bound to underpin local economic activity and boost demand for Aslak's various product lineups.
Argaam
25-06-2025
- Business
- Argaam
Aslak extends MoU for Al Raeda stake acquisition to December-end
United Wire Factories Co. (Aslak) extended the memorandum of understanding signed with Al-Raeda Industrial Investment Co. for a period of 184 days, ending on December 31, 2025, by a written agreement between the two parties, the company said in a statement to Tadawul. It added that this comes for the purpose of completing the due diligence audit and regulatory requirements. According to data available with Argaam, Aslak signed, on Dec. 31, 2024 a non-binding agreement with Al Raeda to acquire 40.0% of the latter's issued shares in return for issuing new shares for the selling shareholders of Al Raeda in Aslak. The valuation of Aslak shares for the purpose of the contemplated transaction was fixed at SAR 29.7 per share. Aslak's CEO Nabil Al-Amir told Argaam in an interview in January that the company will rely on a thorough financial valuation and fair value comparison to determine the exchange ratio for its potential acquisition of a 40% stake in Al Raeda Industrial Investment. He explained that this acquisition aims to achieve major strategic objectives, notably diversifying income sources by entering new industrial sectors and reducing reliance on a single activity.
Argaam
18-05-2025
- Business
- Argaam
High competition affected margins, demand to rise in Q2: Aslak CEO
United Wire Factories Co.'s (Aslak) losses in the first quarter of 2025 followed lower sales margins resulting from high competition and decreased selling prices to maintain market share across its various products, CEO Nabil Al-Amir told Argaam in an interview. The seasonality of Ramadan also had a greater impact this year, as it fell entirely within March. The seasonal factor also had a significant negative effect on commercial segment sales, while industrial sales increased year-on-year. The overall results, however, declined, the CEO added. He explained that first-quarter sales amounted to nearly SAR 165 million, from SAR 187 million in the same period last year, on a 25% drop in commercial sales. Al-Amir further pointed out that Q1 2025 sales volumes grew quarter-on-quarter (QoQ), as the company committed to fully utilizing production capacity to offset costs, avoid the increased impact of price competition on sales margins, and maintain market share until prices improve. Meanwhile, he noted that demand improved after the Eid Al-Fitr holiday, and expected it to recover later in Q2 for some products. However, the impact of the Eid Al-Adha holiday on business volume remains unclear.
