Saudi Cement’s net profit for the fourth quarter of 2018 was SR 125 million Riyadh Capital’s estimates of SAR 89 million, a profit statement said on Wednesday. And the beat was led by better gross margins at 52 percent and higher revenues than expected.
The company exported 255,000 tons of cement during the period, while it exported 198,000 in the previous quarter, with the export market is likely to open up further in the coming quarters.
Revenue stood at SAR 304 million beating the brokerage’s estimates of SAR 301 million. Net margins improved to 41 percent in Q4, 2018, compared to 33 percent same period last year, driven by higher gross margins.
Riyad Capital maintained its “neutral” rating on the stock, revising the target price up to SAR 52 a share.