Saturday, 13 April 2024

Umm Al-Qura Cement’s profits decline by 82.8% during 2023 to 3.9 million riyals

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Umm Al-Qura Cement Company revealed a decline in net profit during the year ending on December 31, 2023, to 3.9 million riyals, compared to 22.9 million riyals in the year before last, by 82.8%. This came after today’s announcement of the annual financial results ending on December 31, 2023.

Operating profit amounted to 15.1 million riyals during the year ending December 31, 2023, compared to 56.2 million riyals in the year before last, a decrease of 73%.

Revenues recorded a decrease of 23.6% during the past year, reaching 168.9 million riyals, compared to 221.2 million riyals in the year before last.

Earnings per share last year reached 0.07 riyals, compared to 0.42 riyals in the year before last.

  The reason for the decrease in sales during the year is due to the decrease in the quantity of sales, as well as the decrease in the selling price per ton compared to the previous year, which led to a decrease in the value of sales.

The reason for the decrease in net profit during this year compared to the previous year is the decrease in the quantity and value of sales, the increase in the cost of sales per ton of cement, the increase in general and administrative expenses, and the increase in zakat expense, despite the decrease in selling and distribution expenses, financing costs, and the increase in other revenues.

In addition to the exceptional factor represented by the major technical failure in one of the components of Cement Mill No. (1), which lasted for 9 months and was repaired during September 2023.

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