Saudi Industrial Development Co.(2130.SA) is set to tackle its accumulated losses, which reached SAR 268 million by the end of Q1 2024, with CFO Ahmed Hassan Shteiwi announcing that nearly 97.13% of these losses will be offset through a capital reduction. The company projects reaching the breakeven point by the close of 2025, based on various studies.

In an interview with CNBC Arabia, Shteiwi highlighted that the capital reduction is aligned with SIDC's vision and strategy for capital restructuring. He also noted that the company's short-term debts make up around 5.3% of its capital, and they possess the liquidity necessary to fulfill their obligations on time, dispelling any immediate need for rescheduling. The company's debt restructuring, carried out 10 years ago, remains effective.

Shteiwi also emphasized the returns from SIDC's operations in Egypt, noting the intangible benefits outweigh the tangible ones. Although the flotation of the Egyptian pound has impacted the company, swift strategic measures, such as investing in essential raw materials and implementing hedging strategies, have mitigated some of the adverse effects.

To bolster revenues, SIDC aims to introduce new products, refine existing ones to cater to market demands, and initiate retail exhibitions. Cost rationalization is also a key focus. The company plans to expand its retail footprint by launching exhibitions under a new identity and ramping up online retail sales of its subsidiary.

Data from media sources indicate that the Capital Market Authority (CMA) has approved SIDC’s plan to reduce its capital from SAR 400 million to SAR 135 million, thereby decreasing the number of shares from 40 million to 13.5 million.