The net profits of Saudi cement companies declined significantly during the past year 2023, compared to their profits in 2022, affected by the decline in the profits of major companies.
The disclosures of listed cement companies in their statements on Tadawul showed that the combined profits of 13 listed companies decreased by 14.34% last year to 1.75 billion riyals, compared to 2.04 billion riyals in the previous year.
While 9 cement producers recorded a decline in net profits during 2023, compared to their profits in the previous year, compared to 4 companies that saw an increase in profits.
Nine cement producers recorded a decline in net profits during 2023, compared to their profits in the previous year.
Saudi Cement Company came first in terms of the highest profits in 2023, with a net profit of 381 million riyals (representing 21.76% of total profits), compared to 398.8 million riyals in 2022, a decrease of 4.46%.
Saudi Cement Company showed the highest profits in 2023, with a net profit of 381 million riyals. The company explained that the decrease in net profit was due to higher selling and distribution expenses, general and administrative expenses and financing expenses, a decrease in the company's share of the profits of an investment in an associate company and a higher zakat expense.
Yemen Cement came in second place in 2022, with a decrease of SAR 398.8 million, a decrease of 4.46%.
Yamama Cement came in second place, with a net profit of 304.25 million riyals for 2023, compared to 355.8 million riyals in 2022, a decrease of 14.5%.
Yamama Cement attributed its net profit to the increase in selling and distribution expenses, general and administrative expenses, and financing expenses.
Yamamah Cement attributed the decline in net profit in 2023 to a decrease in the quantity and value of sales, and higher financing expenses.
Yamamah Cement attributed the decline in net profit in 2023 to a decrease in the quantity and value of sales, and higher financing expenses.
While Eastern Cement Company came in third place, announcing an increase in net profit to 198 million riyals in 2023, compared to 143 million riyals in the previous year, an increase of 38.46%.
Yamamah Cement Company attributed the decline in net profit in 2023 to a decrease in the quantity and value of sales, and a rise in financing expenses.
The company said the increase in net profit was due to higher sales of cement and prefabricated concrete, higher dividends and murabaha income, as well as higher other income.
The company said that the increase in net profit was due to higher sales of cement and prefabricated concrete.
Umm Al-Qura Cement Company recorded the lowest profits at the level of cement companies in 2023, after the company's profits fell by 82.8% to 3.95 million riyals, compared to profits of 23 million riyals in 2022; due to a decrease in the quantity and value of sales, high cost, general and administrative expenses and zakat expense. The company's profits fell by 82.8% to 3.95 million riyals, compared to a profit of 23 million riyals in 2022.
