Eastern Cement net profit jumps 49% to SAR 116 mln in H1 2020

Eastern Province Cement Co. reported a net profit after Zakat and tax of SAR 116 million in the first half of 2020, compared to a net profit of SAR 78 million a year earlier, driven by an increase in cement sales volume and value amid better demand.

The cement producer reported a decline in general, selling and marketing expenses, as well as an increase in the company's profit share from an associate.

In Q2 2020, the cement producer’s net profit after Zakat and tax decreased by 6% year-on-year (YoY) to SAR 30 million, on a decrease in precast cement sales, investment income and other income.

When compared to Q1 2020, net profit slumped 64.7% hit by a decline in cement and precast cement sales volume and value, due to the coincidence of the second quarter with Ramadan and the Eid holiday, and the impact of coronavirus outbreak on the markets.

Eastern Cement reported lower investment income, profit share from an associate, but recorded higher Zakat provision.