Riyadh Steel 2022 profit up 14% to SAR 5.1 mln

Riyadh Steel Co., which will list its shares on Nomu-Parallel Market soon, reported a 14% rise in 2022 net profit to SAR 5.1 million, compared to SAR 4.5 million a year earlier.

The profit increase was spurred by an 8% rise in revenue to SAR 156.10 million in 2022 from SAR 144.74 million in 2021.

Operating profit margins expanded to 4.2% from 3.7% in 2021, as general and administrative expenses dropped by 12% year-on-year (YoY).

On the other hand, gross profit margins contracted from 11% in 2021 to 10% in 2022, on a 90% increase YoY in the cost of sales to total revenue.

In addition to higher finance costs and Zakat expenses, selling and marketing expenses rose by 16% YoY, while other income declined.

Shareholders’ equity, no minority interest, grew to SAR 64.33 million as of Dec. 31, 2022, from SAR 59.99 million in 2021.

Earnings before interest, taxes, depreciation, and amortization (EBITDA) came in at SAR 10.46 million, up from SAR 8.33 million in 2021.

The steel producer recorded operating cash flows of SAR 9.4 million in 2022, compared to SAR 13.4 million a year earlier. Capital expenditure reached -SAR 661,000, down from -SAR 2.13 million in 2021. Cash flows from finance activities turned negative to SAR 11.26 million, against SAR 2.92 million in 2021.

Riyadh Steel’s cash balance reached SAR 11.2 million in 2022, compared to SAR 13.7 million a year earlier.