Yamama Saudi Cement Co sees strong 3Q11 net profit growth

Yamama Saudi Cement Co sees strong 3Q11 net profit growth
Published: 25 October 2011

Yamama Saudi Cement Co posted a net profit of SAR148.6m in 3Q11, 6.3% above 3Q2010 net profit of SAR139.8m. The higher profits are attributed to a 4.8% improvement in cement prices to SAR245.8/t as well as a higher level of dispatches, up 6.8% YoY to 1.22Mt.

The company’s proximity to demand centres in the central region has been key to an improved price realisation, according to Kuwait-based analysts Global Investment House. By comparison, Saudi Cement Co, located in the Eastern Province, sold its cement at SAR240.1/t.

However, the increased cost per sales from SAR100.30 to SAR108.9/t saw gross margins decrease to 55.7% from 57.2% and took some shine of the company’s performance.