SAL Saudi Logistics Services Company, Saudi Arabia’s leading cargo handling player and logistics solutions provider, has announced its financial results for the three-month period ended 31 March 2025.
Revenue for Q1 2025 totalled of US$102 million representing a year-on-year decrease of 15%. The decline was due to a reduction of 6% in shipment volumes and seasonality differences impacting the Company’s product mix.
However, the rapid and continuing growth in e-commerce demand helped mitigate the impact.
SAL delivered a strong performance with stable margins, during a year with lower cargo volumes, mainly driven by volume normalization compared to last year’s exceptional peak, and changes in product mix.
The Handling division continues to play a pivotal role in revenue contribution, further supported by growing e-commerce demand.
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In the Logistics division, SAL has proactively strengthened its business, including prudent credit risk provisioning and introducing more capacity in fulfillment operations. Further to this, we launched the SAL Logistics Zone in northern Riyadh, investing SAR 4 billion which aligns both our growth strategy for the Division and the goals of Vision 2030.
The Company affirmed its commitment to distributing dividends to shareholders, with the Board of Directors recommending a distribution of US$30.4 million for the first quarter.
Omar bin Talal Hariri, Chief Executive Officer of SAL, commented: “The results of the first quarter of 2025 reflect the strength, resilience, and efficiency of our operations, as we navigate a gradual return to stabilized indicators.
"Although a decline in volumes compared to an exceptional period last year, we maintained our operational discipline and our leading position in cargo handling, which enabled the division to continue being a key contributor to profitability, supported by stable operations and our customers’ trust in our services.
"We continue to work on enhancing performance in the logistics division, focusing on growth and increasing market share, with full confidence in the division’s long-term potential.
"We look ahead with optimism to the next phase of our growth strategy through the SAL Logistics Zone project in Falcon City, Riyadh, with an investment of SAR 4 billion.”
Haydar Ucar, Chief Financial Officer of SAL, said: “SAL delivered resilient financial results in the first quarter of 2025, preserving profit margins, managing costs, and managing a healthy balance sheet, in spite of slightly lower volumes compared to last year’s uncharacteristic spike.
"We maintained a healthy EBIT margin, preserved liquidity, and continued to generate positive cashflows. Our proactive financial management, including our investment strategy and working capital optimization, has reinforced the Company’s resilience.
"As we look ahead, we are focused on driving operational efficiency, supporting strategic expansion initiatives, and maintaining a strong foundation for sustainable growth and generating more value for our shareholders.”
Read More: SAL and Sela to Establish US$1 Billion SAL Logistics Zone in Falcon City Near Riyadh