Yanbu Cement H1 2019 boosted by exports: CEO

Yanbu Cement Co.’s exports policies, curbed local expansion and improved selling prices has helped sustain profits, despite lower local demand and the 35 percent year-on-year (YoY) drop in sales for the first half of 2019, CEO Ahmed Zugail told CNBC Arabia.

Exports contributes to cost reduction and increased profitability, which minimizes reliance on bank facilities and allows for distributing dividends, he said.

Zugail noted that exports account for 45 percent of the firm’s current sales, and has generated over SAR 150 million in cash.

Exporting has also enabled the firm to renew its clinker inventory, which stood at 3.8 million tons.

The revenue drop for the period is attributed to seasonal factors, he said, adding that Yanbu Cement’s market share reached 8.5 percent. The company, however, doesn’t currently focus on market share due to the decline in market conditions.

According to data compiled by Argaam, Yanbu Cement’s net profit jumped to SAR 113 million by the end of H1 2019, compared to net profit of SAR 45 million a year earlier.