Riyadh – Mubasher: United Wire Factories (Aslak) on Sunday posted a sharp drop in its profits for the full-year 2017 on the back of lower sales and higher cost of goods sold.

The wire firm reported SAR 25,571 in profits in the 12 months ended 31 December 2017, down 68.77% year-on-year from SAR 81,892.

Earnings per share (EPS) fell to SAR 0.58 in 2017 from SAR 1.87 in 2016, according to a bourse filing.

The lower sales and increase in costs resulted in lower gross margin as fewer quantities were sold due to low demand and the increase in competition, Aslak revealed.

Aslak’s gross profit halved to SAR 68,664 in 2017 from SAR 136,800 in the year before, while its operating profit retreated 61.58% to SAR 35,646 from SAR 92,790 in 2016.

The Saudi wire firm logged SAR 577 million in net sales in 2017, registering a 16% decrease from SAR 590 million achieved the year before. Aslak attributed the decline to lower demand on construction materials.

Comprehensive income also dropped 67% on the back of lower demand for construction materials, reaching SAR 26.6 million compared to SAR 80.9 million in 2016, Aslak said.