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Saudi Chemical Co. expects to establish a presence in Europe and the United States over the coming three years, CEO Mohammed Al-Badr told Argaam.
The Tadawul-listed company will also enter new GCC markets, especially Kuwait and the United Arab Emirates, in the next six months, he said.
Saudi Chemical reported a net profit of SAR 27.82 in the second quarter, a decline of 2.5 percent year-on-year (YoY) mainly due to a decline in sales of explosives, which have higher profit margins, as well as an increase in financial charges.
The company’s pharmaceuticals and detergents division is witnessing higher revenue growth, compared to the explosives segment, the CEO said.
“Explosives are utilized in the road construction projects, and are related to the cement production; thus, its sales are affected by the government spending on construction,” he said.
On a sequential basis, net income halved from SAR 56.42 million the previous quarter on account of lower sales due to seasonal factors, namely the stoppage in production of explosives during Ramadan and Eid Al-Fitr.
Meanwhile, Saudi Chemical’s subsidiary AJA Pharma Co. has inked agreements with five major pharmaceuticals firms to produce and register new products in the Kingdom, Al-Badr noted. The deals are expected to reflect positively on H2 2018 earnings.
“AJA Pharma has begun a trial run of pills and liquids production lines at its new plant in Hail”, Al-Badr said.
The company is also developing another two production lines for creams and dry syringes, which are expected to be complete by the end of 2019 or early 2020
Saudi Chemical reported net profit of SAR 84.2 million in H1 2018, compared to SAR 83.7 million in the year-earlier period, amid higher sales as a result of an increase in pharmaceutical sales.
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