Najran Cement (Saudi Arabia) has reported a significant improvement in its financial performance for the 3Q24, reflecting a rise in sales and profitability compared to both the same period in 2023 and in the previous quarter.
The company recorded sales of SAR134.57m (US$35.88m), marking an 18.2 per cent increase from SAR113.84m in the year-ago period. The company’s gross profit rose to SAR36.89m, a 14 per cent increase from SAR32.37m in the 3Q23 and operational profit increased 20.7 per cent from SAR20.89m to SAR25.21m. The company’s net profit also saw a notable increase of 27.9 per cent from SAR14.02m in the equivalent period of the previous year to SAR17.93m.
According to information available from the Saudi Exchange, Najran Cement's performance for the nine months ending on 30 September 2024, also showed an overall increase in revenue. Sales reached SAR385.96m, up 7.56 per cent from SAR358.82m during the same period in 2023. However, the cumulative net profit declined by 6.7 per cent, totalling SAR46.98m compared to SAR50.36m in the previous year, due to increased production input costs and finance expenses.
The auditor's report highlighted concerns with the company’s depreciation method for property, plant and equipment valued at SAR2.01bn as of 30 September 2024. The report also noted an inability to verify the provision for slow-moving items within consumable spare parts inventory, valued at SAR121m. The company has stated it is working with auditors to provide the necessary documentation to resolve these issues.
