High competition affected margins, demand to rise in Q2: Aslak CEO

Nabil Al-Amir, CEO of United Wire Factories Co. (Aslak) 

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.

According to data available on Argaam, Aslak incurred losses of SAR 600,000 by the end of Q1 2025, versus profits of SAR 6.1 million achieved during the same period in 2024.