Strong demand lifted sales, customer base in Q4 2024: SACO CEO

For the three-month period, sales grew by 17% amid no branch expansions, with the customer base also soaring by 11% during the same quarter. This in turn reflected the success of SACO’s transformation plan that was launched in March 2023.

SACO operates 33 branches across 20 cities in Saudi Arabia. The company is currently prioritizing the development of its e-commerce platform and enhancing customer services. This is while also exploring new investment opportunities in a bid to open new outlets and revamp some existing branches.

Commenting on the latest financial results, Bdeir explained that the return to profitability in Q4 2024, after more than three years of loss-making, was driven by a 17% annual sales rise, despite not opening new branches during the three-month period.

Additionally, the gross profit margin (GPM) improved by 6.3 basis points in Q4 2024, resulting in a SAR 21 million (95%) increase in SACO’s three-month gross income. The company’s profitability was also buoyed by a 21% (SAR 8 million) drop in general & administrative expenses for the same quarter.

Bdeir highlighted that key drivers of SACO’s return to profit-making are anchored in its transformation plan that was launched in March 2023. These include signing new supplier contracts that helped reduce the cost of sales, enabling SACO to offer competitive prices in its stores and online platforms, not to mention the improved GPM.

The company also cleared old inventory and introduced a diverse of over 20,000 new high-quality products. Additionally, SACO implemented training and incentive programs for its employees, enhancing customer experience and driving sales growth.

The CEO noted that most product categories experienced sales growth, boosted by the launch of new products in the second half of 2024. The company also introduced new divisions and categories, including home furnishings, school supplies, toys, televisions, air conditioners, and more, all of which received strong customer demand.

The top revenue-generating categories in Q4 2024 included electrical appliances, household tools, indoor and outdoor furniture, gardening supplies, and hardware and tools.

Bdeir emphasized that SACO is a leading destination for seasonal goods in Saudi Arabia, particularly for outdoor seating, heaters, outdoor air conditioners, camping, and gardening tools. The company also launched new products and brands that attracted customer interest, supported by targeted marketing campaigns.

Regarding e-commerce performance, SACO’s digital sales grew by 65% in 2024, compared to 2023, and surged by 107% on an annual basis in Q4 2024, reflecting continued strong growth in this segment.

As for the Q1 2025 outlook, Bdeir stated that the company remains on track with its transformation plan, with financial results to be announced in due course.

He added that SACO continues to introduce new products and categories from global markets, expecting them to be well-received by customers due to their variety, quality, and competitive pricing.

SACO is also committed to further developing its digital platforms and applications to enhance its online shopping experience, the CEO concluded.