Umm Al-Qura Cement profits fall 55% to SR8.3 mln in Q2‎

Umm Al-Qura Cement Company revealed a decrease in net profit after zakat and tax in the second quarter to 8.3 million riyals, compared to 18.4 million riyals in the same quarter of last year, at a rate of 54.7%, this came after today’s announcement of the preliminary financial results for the period ending in 2022- 06-30 (six months).

The operational profit amounted to 13.5 million riyals in the second quarter, compared to 24.4 million riyals in the same quarter of the previous year, a decrease of 44.7%.

The net profit after zakat and tax in the 6-month period amounted to 22.1 million riyals, compared to 49.4 million riyals in the same period last year, down 55.15%.

The total shareholders’ equity “without minority rights” amounted to 758.3 million riyals in the current period, compared to 747.7 million riyals in the same period last year, a growth of 1.42%.

Profits per share in the current period reached 0.4 riyals, compared to 0.9 riyals in the same period last year.

The reasons for the decrease in net profit during the current quarter of 2022 compared with the same quarter of the previous year is due to the decrease in the value of sales and increase in the cost of sales, also increase in selling and marketing 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 value of sales for the current quarter compared to the previous quarter, and increase in selling and marketing expenses, general and administrative expenses for the current quarter compared to the previous quarter, despite the decrease in financing costs for the current quarter compared to the previous quarter.

The main reason for the decrease in net profit for the current period compared to the same period of the previous year is due to decreased value of sales for the current period compared to the same period of the previous year. Increase in selling and marketing expenses, general and administrative expenses for the current period compared to the same period of the previous year , despite the decrease in financing costs for the current period compared to the same period of the previous year.