Saudi Cement’s Q2 2019 net profit beats forecasts: Riyad Cap

Saudi Cement Co.’s Q2 2019 net profit of SAR 92 million topped Riyad Capital’s estimates of SAR 62.8 million.

The profit rise was driven by higher sales volumes, along with a rise in net income from associates and other revenue, Riyad Capital said in an earnings note.

Meanwhile, gross profit margins dropped 500 basis points (bps) quarter-on-quarter on higher cost per ton, despite a year-on-year (YoY) rise of 200 bps. 

Higher revenue and net income on a YoY basis were attributed to improved selling prices.

Riyad Capital added that it remained “neutral” on the stock, upping its target price to SAR 64 from SAR 56.