The Board of Directors of Raysut Cement Co of Oman has recently released the group's unaudited financial results for the third quarter ended 30 September 2024.

Raysut Cement Co (parent company) saw an 11 per cent YoY increase in sales revenue to OMR9,468,000 (US$24,592,639), while the total consolidated sales revenue increased nine per cent YoY to OMR17,250,000 compared to the same period in 2023. The parent company's gross profit declined modestly by three per cent YoY to OMR2.092m, whereas consolidated gross profit improved by four per cent YoY to OMR2.853m during the same period. Operating profit demonstrated significant improvement, rising by 77 per cent  to OMR485,000 for the parent company and 96 per cent to OMR436,000 for the group, reflecting strong operational performance in the third quarter compared to 3Q23.

The parent company reduced its net loss by 36 per cent to OMR-633,000, while the consolidated net loss fell by 42 per cent during 3Q24 to OMR-936,000 compared to 3Q23. Significant improvements in operating profit and reduced net losses indicate effective cost management and streamlined operations. These achievements reflect the group's efforts to enhance revenue generation and financial health, positioning it for continued progress in the coming periods.

According to the company financial statement uploaded on the local stock exchange, Oman and the UAE constitute the regional markets for both the parent company and the consolidated group. in the 3Q24, the market showed promising growth compared to last year. However, it faces challenges due to overcapacity in neighbouring countries, leading to excess supply in Oman and downward pressure on cement prices.

Raysut Cement's export markets include Maldives, Yemen and eastern Africa. The current economic slowing down affected cement markets globally due to regional political instability, foreign exchange challenges, logistics and the capacity of Asian cement players, which are tough competition, resulting in the lower realisation of export sales. The group’s performance is bolstered by significant export and local sales growth, positioning it for further success. At the same time, the parent company may need to address domestic market challenges to reverse the slight decline in overall sales.

by Abdul Siddiqi, Pakistan