Saudi Arabia’s cement sector reported strong top-line growth in the 1Q25, with total sales surpassing SAR3bn (US$800m), reflecting an 8.5 per cent YoY increase.
However, rising operational costs weighed on bottom lines, with industry-wide net profits slipping 16.3 per cent to US$182m (SAR648m), down from SAR774m a year earlier, reports Ashram Al-Aswat.
Among the 14 publicly listed cement producers on the Saudi exchange, 13 posted net profits during the first quarter. The exception was Al Jouf Cement, which recorded a loss of SAR15.2m. The company attributed its ongoing losses to rising production expenses, increased marketing costs, and higher financing burdens.
Yamama Cement emerged as the most profitable firm, reporting SAR142m in net income, a 23.5 per cent jump from 1Q24. The company credited the gains to both increased sales volumes and improved average selling prices.
Saudi Cement posted the second-highest profit at SAR108m, though this represented a 4.7 per cent decline YoY. The drop was attributed to lower sales volumes, declining revenue from secondary sources, and higher general and administrative expenses.
Qassim Cement ranked third, with SAR94m in profit, up 26.8 per cent from the same period last year. The company cited stronger sales and reduced operating costs, including sales and administrative expenses.
According to Dr Suleiman Al-Khalidi, a financial analyst and member of the Saudi Economic Association, the 1Q performance reflects improving conditions for the cement industry after years of volatility. “We are witnessing signs of stabilisation, with companies optimising operational costs and improving efficiency,” he said.
Al-Khalidi forecasts steady growth in domestic cement demand, driven by large-scale infrastructure initiatives tied to Vision 2030, such as NEOM, Qiddiya, and the Red Sea Project.
