Saudi Cement Company saw a double-digit drop in net profit last year, with sluggish local cement demand pushing the firm into red for the year ending 31 December, 2018.
According to the firm's financial results on Saudi bourse Tadawul, profits after zakat and tax stood at $106.8 (SAR400.5m), a 12% decline on 2017’s corresponding figure of $120.9m (SAR453.4m).
Revenue for year hit $298.6m (SAR1.12bn), a 5.5% dip on 2017 when the group brought in $314.6m (SAR1.18bn) in cash.
A “decrease in local sales”, alongside a rise in selling, distribution, and Islamic financing charges, contributed to net profit declines last year, as outlined in the bourse missive by Saudi Cement Co.
The firm’s 2018 figures mirror recent research by Saudi-based Al Rajhi Capital, whose latest Saudi Cement Sector report noted a 13% year-on-year decline in local sales volumes of cement in Saudi Arabia during Q3 2018.
The group claimed that government-backed megaprojects, including the $500bn (SAR1.9tn) Neom, Qiddiya entertainment city, The Red Sea Project, and social housing schemes would likely create an “incremental demand" for cement only in the long term.