Hail Cement’s profit lifted by better selling prices, cost cutting: CEO

Hail Cement Co.’s net profit was mainly bolstered by improvement in average selling prices since the beginning of 2019, CEO Khalid Al-Ahmed told Argaam in an exclusive interview on Monday.

“The annual results were also buoyed by the company’s initiatives to cut costs and enhance efficiency. In addition, marketing strategies helped Hail Cement diversify its product portfolio,” Al-Ahmed said.

The northern region witnessed an increase in cement selling prices per ton, similarly to other Saudi regions, due to improved average selling prices.

In addition, Hail Cement’s share in the local cement market stands at nearly 3%, Al-Ahmed noted, expecting a robust demand for cement throughout the first quarter of 2020 following its recovery in Q4 2019.

Hail Cement reported a net profit of SAR 31.43 million in Q4 2019, compared to a net profit of SAR 8.5 million a year earlier.