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Lower sales weigh on Northern Cement’s profit in Q3

Lower sales weigh on Northern Cement’s profit in Q3
Lower sales weigh on Northern Cement’s profit in Q3
NORTHERN CEMENT
3004
-1.87% 9.99 -0.19

Riyadh – Mubasher: Northern Region Cement Company on Thursday reported a 60.4% year-on-year decrease in net profits in the third quarter of 2018, citing lower sales.

Northern Cement’s net profits after calculating Zakat and Tax amounted to SAR 4.99 million ($1.33 million) during Q3-18, down from SAR 12.6 million ($3.36 million) in Q3-17, according to a bourse filing.

The Saudi firm attributed the profit decline to a drop in sales’ volume and prices due to strong competition, in addition to lower selling prices in a subsidiary.

Sales fell 16% to SAR 87.96 million from July to September, compared to SAR 104.85 million in the same period last year.

Operating profits tumbled 20%, reaching SAR 17.82 million by the end of Q3-18, compared to SAR 22.30 million in the prior year period.

Quarter-on-quarter, Northern Cement turned profitable, after incurring SAR 6.69 million losses.

From January to September, the Saudi cement producer suffered SAR 238,519 in losses, against SAR 37.55 million profits in the year-ago period.

Revenues retreated 9% to SAR 309.52 million in nine months this year, from SAR 339.3 million in the same period a year earlier of 2017.

Year-on-year, operating profits slumped 57% to SAR 31.68 million from SAR 74.23 million, Northern Cement said.

By 12:04 pm Saudi time, Northern Region Cement Company’s stock rose 3.02% to SAR 8.51.