Umm Al-Qura Cement reports 55% profit decline to SR14mln in 1Q

Umm Al-Qura Cement Co. announced that its profits after zakat and tax declined 55% to SR 14 million in the first quarter of 2022 compared to SR 31 million during the same period of 2021.

This came after Umm Al-Qura Cement announcement on Monday of the preliminary financial results for the period ending on 31.03.2022 (three months).

The company’s operational profit fell 48% to SR 20 million in the 1^st quarter of the current year from SR 38 million in the same period of the previous year.

Gross profit of Umm Al-Qura Cement slid 43% to SR 23 million in the first quarter of this year from SR 41 million a year ago, while the profit per share (EPS) slipped to SR 0.25 from SR 0.56.

The lower profits were due to the decrease in the quantity and value of sales for the current quarter compared to the same quarter of the previous year. and the increase in selling and marketing expenses, general and administrative expenses for the current quarter compared to the same quarter of the previous year, despite the decrease in financing costs during the current quarter compared to the same quarter of the previous year.

The main reason for the decrease in net profit for the current quarter compared to the previous quarter is due to the decrease in the amount and value of sales for the current quarter compared to the previous quarter, and the increase in financing costs and Zakat expense for the current quarter compared to the previous quarter, despite the decrease in selling and marketing expenses, general and administrative expenses for the current quarter compared to the previous quarter.