Southern Province Cement profits decrease by 30% to SAR 301 mln at the end of 2022

The net profit after zakat and tax for the Southern Region Cement Company decreased to SAR 301 million during the year 2022, compared to SAR 429 million in the year 2021, by 30%. This came after today’s announcement of the annual financial results ending on 12-31-2022.

The operating profit amounted to SAR 294 million during the year ending in 2022, compared to SAR 443 million in the previous year, a decrease of 34%.

As for the total profit, it amounted to SAR 357 million in the current year, compared to SAR 505 million in the previous year, a decrease of 29%.

Earnings per share in the current year amounted to SAR 2.15, compared to SAR 3.07 in the previous year.

The decrease in net profit for the current year compared to the previous year is due to:

Decrease in sales revenues due to the decrease in the number of local sales in addition to the decrease in the selling price with an increase in operating expenses

1- The total sales revenue at the end of the current year amounted to SAR 1,222 million, compared to SAR 1,339 million at the end of the previous year, with a decrease of (8.74%).

2- Total shareholders’ equity (no minority rights) at the end of the current year amounted to SAR 3,206 million, compared to SAR 3,186 million at the end of the previous year, with an increase of 0.63%.

3- Total comprehensive income for the current year amounted to SAR 299 million compared to SAR 432 million for the previous year, with a decrease of (30.79%).

4- The statement of financial position data as of December 31, 2021, the statement of profit or loss and other comprehensive and condensed statements of cash flow for the year ending on December 31, 2021, have been represented in line with the requirements of IAS (8) “Change in Accounting Policies, Change in Accounting Estimates and Accounting Errors” in order to recalculate the accrual of limestone extraction expense for the Ministry of Industry and Mineral Resources.

5- Basic earnings per share is calculated based on the distributable profit for ordinary shares using the weighted average number of ordinary shares outstanding at the date of the financial statements.