Asq Plastic Factory Company, listed on the Saudi Stock Exchange (Tadawul), announced growth in its annual profits for 2025, with net profit reaching SAR 32.9 million, a 2.3% increase compared to SAR 32.2 million in 2024. This positive performance comes amidst a dynamic and competitive economic environment, reflecting the company's resilience and ability to adapt to market changes.
Key growth drivers and operational challenges
According to the company's official statement on the Saudi Stock Exchange (Tadawul), this growth is primarily attributed to the strong performance of the packaging sector. This sector witnessed a remarkable 19% increase in net profit, rising to SAR 26.5 million compared to SAR 22.2 million in 2024. This growth was driven by increased sales volume and stable operating margins within the sector, underscoring the growing demand for high-quality packaging products in the local market.
Despite strong revenue growth, the pace of net profit growth was limited due to several phased and strategic factors. Among the most significant of these was the commissioning of new production lines as part of the company's ambitious expansion plans, which resulted in a natural increase in depreciation and operating expenses related to supporting business growth. The increasingly competitive environment in the pipes and fittings sector also led the company to adopt intensive sales and marketing policies to enhance its market share, resulting in a one-off increase in sales, marketing, and shipping costs. Additionally, administrative expenses increased to support sustainable growth strategies through staffing enhancements and operational efficiency.
Economic context and the Kingdom's Vision 2030
The performance of Asq reflects the positive developments in the industrial sector in Saudi Arabia, a key pillar of the Kingdom’s Vision 2030, which aims to diversify national income sources and reduce reliance on oil. Companies like Asq benefit from massive development projects in infrastructure, housing, and major tourism projects, which create consistent demand for plastic products such as pipes and packaging materials. The company’s investment in expanding its production capacity positions it well to capitalize on these future opportunities and contribute to increasing local content.
Dividend distribution and board recommendation
Reflecting the stable financial performance and confidence in future cash flows, the Board of Directors of Asq Plastic Factory Company recommended distributing cash dividends to shareholders for the fiscal year ending December 31, 2025. The company explained that the total amount recommended for distribution is SAR 4.58 million, which will be distributed among 7.05 million shares eligible for dividends.
The dividend per share is SAR 0.65, representing 6.5% of the share's nominal value. The company indicated that shareholders owning shares at the close of trading on the day of the General Assembly meeting and registered in the company's shareholder register at the Securities Depository Center (Edaa) at the end of the second trading day following the entitlement date will be entitled to the dividends. The date of the General Assembly meeting and the dividend distribution date will be announced later, after obtaining the necessary regulatory approvals.
