Saudi Companyfor Hardware (Saco) sold its 43k sqm warehouse in Riyadh for about SAR 140 mn (c. USD 37 mn) to Sixth Irada Supply Company, according to a disclosure to Tadawul. The transaction's proceeds will go towards clearing Saco’s bank debt and supporting its future expansion initiatives.

Behind the move: This sale is a part of Saco's so-called “turnaround plan” — aiming to streamline supply and distribution by consolidating operations into warehouses exclusively in Dammam city, while turning its Riyadh warehousing asset into investment property, the disclosure said. The firm expects this move to boost long-term strategic goals, improve supply chain efficiency, and increase returns through better asset management.

Saco’s 2024 in numbers: The Saudi-based player cut its y-o-y losses by 79.6% in FY 2024, recording a net loss of SAR 14.1 mn, whereas its revenues rose 6.8% y-o-y to SAR 993.6 mn, partially due to growing logistics service revenue. Its fully-owned subsidiary Medscan Terminal Company — which handles goods transportation services, port handling services, warehouse management and maintenance, and customs clearance services — saw its revenues more than double y-o-y to reach SAR 42.5 mn, according to company financials (pdf).

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