Industrial Means experienced a significant decline in profits during the 2025 fiscal year, reporting a net profit of SAR 33.78 million. This decrease compares to the SAR 39.13 million profit achieved in the previous year, 2024. This decline reflects a number of financial and operational changes the company underwent during the past period, which directly impacted its overall profit margins.
Reasons for the decline in profits of industrial means and the impact of raw material prices
According to the official statement issued by the company and published on the Saudi Stock Exchange (Tadawul) website, the primary reason behind the decline in industrial means' profits is the decrease in the discount rate granted on raw material purchases. This decline resulted directly from a decrease in the volume of purchases from Saudi Basic Industries Corporation (SABIC), the main supplier of raw materials. Additionally, the 2024 financial results included a one-off gain from the sale of certain investments, which led to a year-on-year decrease in operating profits for the current year.
The economic context of the manufacturing sector in Saudi Arabia
Industrial Means Company is one of the leading companies in Saudi Arabia in the manufacture of plastic pipes and irrigation systems, playing a vital role in supporting the infrastructure and agricultural sector. Historically, the Kingdom's manufacturing and plastics industries have relied heavily on petrochemical supplies from major companies like SABIC. The profit margins of these companies are directly affected by the volume of demand and purchases, with quantity discounts playing a strategic role in reducing the cost of sales. Therefore, any fluctuation in purchase volume or change in pricing policies is immediately reflected in the financial performance of manufacturers.
Details of cash dividend distributions to shareholders
Despite the decline in net income, the board of directors of Industrial Means Company recommended distributing cash dividends to the company's shareholders for the second half of the fiscal year ending December 31, 2025. The company explained in its statement that the total amount allocated for distribution is estimated at approximately 18.75 million Saudi riyals, with each share of these distributions amounting to 0.075 riyals.
The company added important details regarding dividend entitlement, noting that after obtaining the General Assembly's approval of this recommendation, dividend distribution will be for shareholders who own shares at the close of trading on the date of the General Assembly meeting. It is also required that shareholders be registered in the company's shareholder register with the Securities Depository Center Company (Edaa) by the end of the second trading day following the date of the General Assembly meeting, the date of which will be announced later. The company also noted that the actual dividend distribution date will be determined later.
Expected impact on the local market and investor confidence
The company's announcement of a cash dividend, despite lower profits, carries positive implications for investors in the local market. It reflects the company's strong financial position and its ability to generate sufficient free cash flow to reward shareholders. Regionally and locally, the stability of dividend payouts contributes to strengthening investor confidence in the basic and downstream industries sector, which is a key pillar of Saudi Vision 2030 for diversifying income sources and reducing dependence on oil. The commitment of companies listed on the Saudi Stock Exchange to clear dividend policies enhances the market's attractiveness to both local and international investors.
