Arabian Cement Company said net profits last year rose by almost half against 2009 despite a fall in gross profits, as higher sales costs met with lower volumes in an increasingly saturated market.
The Jeddah-based firm said pre-tax takings reached SAR318.9m (US$85m), down 18.3% from SAR 390.2m the previous year, a slide the company attributes to higher costs against the amount being produced. The company has halted certain production lines for maintenance work and this has driven up expenses on inventory costs and fixed costs.
But net profits soared from SAR172m to SAR255.4m, or 48.5%, due to a decline in “allocations that are configured for what has been allocated in the past year”, from SAR147m allocations in 2009 to SAR25m.
Operating profits rose 18% to SAR288m.