The net profit of the Southern Region Cement Company (Southern Cement) almost halved, affected by the decline in demand for cement during the first quarter of this year ending on December 31.
The company revealed its quarterly business results today, which showed a decline in revenues and an increase in production costs compared to the first quarter of last year.
The company recorded a net profit of 87 million riyals, compared to 169 million riyals in the corresponding period, a decrease of 48.5%.
South Cement said that the decline in net profits came as a result of “a decrease in sales revenues due to a decrease in demand and a decrease in other revenues with an increase in general and administrative expenses”, as the company indicated the increase in sales costs.
The company achieved revenues of 330 million riyals during the first quarter of this year, compared to 439 million riyals during the corresponding period, down by 25%.
Earnings per share amounted to 0.62 riyals, compared to 1.21 riyals at the end of the first quarter of last year.