Arabian Cement H1 2022 net profit drops 14% to SAR 86.9 mln; Q2 up 34% to SAR 45 mln

Arabian Cement Co. reported a 14% fall in H1 2022 net profit after Zakat and tax to SAR 86.9 million, from SAR 100.5 million in the year-earlier period.

This profit fall was attributed to lower sales value and volume both locally and from Jordan’s operations. The cement producer also cited lower dividends from investment in equity instruments at fair value, despite higher average selling price, an increase in the company’s profit share from associates, the decrease in selling and marketing expenses, the decrease in finance costs, and growth in other income.

In Q2 2022, net profit after Zakat and tax rose by 34% to SAR 45 million, from SAR 33.52 million a year earlier. The profit growth was spurred by an increase in the average selling prices, and better profit share from associats. Arabian Cement also reported a decrease in the general and administrative (G&A) expenses, as well as the selling and marketing expenses. Moreover, it reported lower finance costs despite the decrease in the sales volumes from Saudi and Jordanian operations.

Compared to Q1 2022, net profit grew by 7.4% from SAR 41.90 million.

Total shareholders’ equity, after minority interest, retreated 8.1% to SAR 2.659 billion as of June 30, 2022, from SAR 2.893 billion in the prior-year period.

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