Saudi Lime CEO says production capacity meets growing construction market needs, gross margin at 48%

Logo of Saudi Lime Industries Co.

Saudi Lime Industries Co. has a production and design capacity that meets the current and increasing future needs of the construction market, CEO Ahmed Elewa told Argaam in an interview. 

The company is currently working on an ambitious project for full digital transformation through the automation of all production and administrative operations, he added. 

The company invested nearly SAR 60 million in the replacement and upgrade of machinery and equipment, furnace maintenance, and the construction of more production lines. This contributed largely to increase operating efficiency and filtered through a 7% rise in net profit for the six-month period ended June 30, 2022.  

Saudi Lime has an output and inventory from its own quarry, which helps it hedge against price fluctuations in limestone, the main raw material of suppliers, and consolidate its product quality, Elewa added. The company also owns a plant for sand lime blocks in Jeddah, which ensures sustainable growth and optimal results. 

Saudi Lime was founded in 1977 with SAR 21 million capital, which was increased to SAR 200 million. The company manufactures chemical substances, sand blocks, chimney bricks, quicklime and hydrated lime.  

The company ranks among the leading manufacturers of blocks, as well as sand lime and limestone in the Kingdom, with a long experience of more than 46 years. It has two licenses to deploy two mines spanning a total area of one million square meters each. 

The limestone producer showed high resilience in pushing development and digital transformation to deliver its strategy, enhance its market share, as well as operating and financial growth.  

Saudi Lime posted a total profit of nearly SAR 49 million and over SAR 60 million in 2020 and 2021, respectively.  

Gross profit also neared SAR 34 million in the six-month period ended June 30, 2022 and SAR 340 million in the prior-year period with gross margins of 48% and 46%, respectively, which reflects the company’s success in maintaining its operating and financial performance.

Saudi Lime is keen to use raw materials of prime quality and ensure the compliance of its block and brick products with the highest international standards, Elewa noted, adding that the company adopts an outstanding approach for upgrading, development and expansion in factories.  

The company’s board of directors is keen on strategic expansion and sustainable growth through developing an integrated distribution system to deliver products at competitive prices locally and abroad.  

Saudi Lime’s board paid a cash dividend of SAR 0.50, or 5% of capital, totaling SAR 10 million, for the fiscal year ended 2021. The company’s total assets exceeded SAR 299 million as of June 30, 2022, compared to more than SAR 304 million in the year-earlier period.