Najran Cement reports profit decline of 59.5%

Najran Cement Company announced that its profits after zakat and tax declined 59.5% to SR 13.3 million in the second quarter of 2022 compared to SR 33 million during the same period of 2021.

This came after Najran Cement announcement on Monday of the preliminary financial results for the period ending on 30.06.2022 (six months).

The company’s operational profits fell 52% to SR 17 million in the 2^nd quarter of the current year from SR 35 million in the same period of the previous year.

Gross Profits of Najran Cement dipped 34% to SR 31 million in the second quarter of this year from SR 47 million a year ago, while the profit per share fell to SR 0.19 from SR 0.55.

The reason of the decrease in the net profit during the current quarter compared to the same quarter of the last year is a decline in sales, an increase in the cost of production inputs and in selling and distribution expense.

The reason of the decrease in the net profit during the current quarter compared to the previous period of the current year is a decline in sales due to cyclical trend of lower cement demand during Ramadan and Eid Al Fitr season, and an increase in general and administrative expense.

The reason of the decrease in the net profit during the current period compared to the same period of the last year is a decline in sales and an increase in the cost of production inputs.