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Majed Al Essa, CEO of Saudi Ceramic Co.
Saudi Ceramic Co.’s (SCC) performance improved significantly, driven by the current growth in the contracting and construction sector, Chief Executive Officer (CEO), Majed Al Essa, told Argaam in a telephone interview.
Saudi Ceramic concluded contracts with several real estate developers, being the largest local producer of tiles, sanitaryware and heaters in the Kingdom. It is keen to capitalize on the support provided for mega housing projects in Saudi Arabia to enhance local content. Accordingly, the tile producer aspires to participate in these projects, Al Essa said.
Elsewhere, Al Essa noted that Saudi Ceramic is working on various initiatives to slash costs on all levels, and enhance efficiency and production capacity at its plants.
The company’s financial results were also bolstered by better average prices of some products, as well as lower selling and marketing costs. Moreover, the company’s retail segment reported 21% growth, Al Essa noted, affirming that Saudi Ceramic’s retail business is eying more growth.
Replying to a question about the anti-dumping fees on low-quality tile imports to the Saudi market and its impact on Saudi Ceramic’s profit margins, Al Essa said improved prices marginally lifted the tile sector. However, this improvement was not the main reason behind the enhanced performance, as growth was reflected on all segments of the company.
“Saudi Ceramic is aiming to maintain its solid performance despite the current challenges and report positive performance in the coming period,” Al Essa added.
Saudi Ceramic reported a net profit of SAR 134 million in H1 2021 and SAR 63.3 million in the second quarter, Argaam reported.
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Saudi Ceramic posts SAR 134 mln profit in H1 2021 |
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