SACO turnaround plan to pay off in Q4 2023: CEO

Abdel-Salam Bdeir, CEO of SACO

Abdel-Salam Bdeir, CEO of Saudi Company for Hardware (SACO), said the outcomes of its turnaround plan will appear in the fourth quarter of 2023, affirming that the company’s team make tireless effort to achieve profit.

SACO’s showrooms decreased to 33 across the Kingdom by the end of Q1 2023, from 35 in Q1 2022 as the company closed two branches, Bdeir told Argaam in an interview.

“No financial impact is likely from these closures, as SACO under its turnaround plan monitors its branches in terms of number, reach and location. It aims to open more efficient, new branches,” the CEO added.

Work is underway to put the goals of the turnaround plan into action. This includes improving prices, signing new contracts to boost profitability and providing better shopping experience whether at brick-and-mortar or online stores,” Bdeir explained. Customers will notice a change in SACO’s prices, services, offerings and showrooms.

Elsewhere, the CEO added the first-quarter losses were primarily attributed to lower sales on a year-on-year basis. Further, the decline in SACO’s sequential profit was attributed to inventory provisions and the impairment of non-financial assets, which were approved in the previous quarter. The first-quarter results were expected.

Bdeir added that SACO’s share buyback is subject to shareholders’ approval,Noting that details will be duly announced.