Saudi Ceramics profit drops 46% to SAR 48 mln in H1 2023; Q2 down at SAR 33.3 mln

18/07/2023 Argaam Exclusive

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Share Price

36.85
0.50 1.38 %

Saudi Ceramic Co. (SAUDI CERAMICS)

Saudi Ceramic Co. (Saudi Ceramics) reported a net profit of SAR 48 million in H1 2023, down 46% from SAR 89.3 million in H1 2022.



Financials (M)

Item 6m 2022 6m 2023 Change‬
Revenues 734.98 621.94 (15.4 %)
Gross Income 227.54 153.33 (32.6 %)
Operating Income 89.06 23.09 (74.1 %)
Net Income 89.26 48.00 (46.2 %)
Average Shares 80.00 80.00 -
EPS (Riyals) 1.12 0.60 (46.2 %)

The profit retreat was due to lower sales and volumes.  

 

The company also noted increased production input and financing costs despite. On the ither hand, it made capital gains from non-operating activities in the current period.



Current Quarter Comparison (M)

Compared With The
Item Q2 2022 Q2 2023 Change‬
Revenues 338.83 253.05 (25.3 %)
Gross Income 105.55 63.21 (40.1 %)
Operating Income 35.75 1.82 (94.9 %)
Net Income 37.97 33.29 (12.3 %)
Average Shares 80.00 80.00 -
EPS (Riyals) 0.47 0.42 (12.3 %)

The second-quarter net profit fell 12% year-on-year (YoY) to SAR 33.3 million due to lower sales, particularly in the tiles segment. The ceramics producer cited also higher production and financing costs.  

 

The cement producer’s Q2 profit rose 126.4% from SAR14.71 million in Q1 2023. 

 

Shareholders’ equity, excluding minority interest, stood at SAR 1.76 billion as of June 30, 2023, compared to SAR 1.70 billion in the year-ago period. 



Financial results (Million)

Period Revenues Change Gross Income Change Net Income Change EPS(Riyal)
Q1 2014 424.02 4.4 % 153.61 0.9 % 87.42 6.3 % 1.09
Q2 2014 437.62 2.0 % 152.06 0.2 % 84.09 2.3 % 1.05
Q3 2014 385.64 0.6 % 131.82 (4.9 %) 78.88 9.9 % 0.99
Q4 2014 374.07 (2.0 %) 126.49 (7.3 %) 59.83 (18.3 %) 0.75
Q1 2015 447.05 5.4 % 158.46 3.2 % 84.27 (3.6 %) 1.05
Q2 2015 444.31 1.5 % 162.61 6.9 % 81.25 (3.4 %) 1.02
Q3 2015 354.58 (8.1 %) 124.96 (5.2 %) 62.65 (20.6 %) 0.78
Q4 2015 412.03 10.1 % 135.95 7.5 % 55.65 (7.0 %) 0.70
Q1 2016 372.80 (16.6 %) 121.11 (23.6 %) 47.68 (43.4 %) 0.60
Q2 2016 347.85 (21.7 %) 109.01 (33.0 %) 28.60 (64.8 %) 0.36
Q3 2016 232.44 (34.4 %) 54.62 (56.3 %) (46.88) (174.8 %) (0.59)
Q4 2016 350.43 (15.0 %) 73.09 (46.2 %) (9.22) (116.6 %) (0.12)
Q1 2017 315.35 (15.4 %) 81.02 (33.1 %) 11.47 (75.9 %) 0.14
Q2 2017 274.69 (21.0 %) 65.29 (40.1 %) (5.84) (120.4 %) (0.07)
Q3 2017 224.14 (3.6 %) 24.26 (55.6 %) (39.91) 14.9 % (0.50)
Q4 2017 325.55 (7.1 %) (2.30) (103.1 %) (62.77) (581.2 %) (0.78)
Q1 2018 256.48 (18.7 %) 22.39 (72.4 %) (49.95) (535.5 %) (0.62)
Q2 2018 241.88 (11.9 %) 30.26 (53.7 %) (46.51) (696.0 %) (0.58)
Q3 2018 250.00 11.5 % 36.59 50.8 % (38.53) 3.5 % (0.48)
Q4 2018 279.69 (14.1 %) 18.57 907.3 % (79.59) (26.8 %) (0.99)
Q1 2019 309.60 20.7 % 52.46 134.3 % (25.05) 49.8 % (0.31)
Q2 2019 273.84 13.2 % 60.65 100.5 % (16.10) 65.4 % (0.20)
Q3 2019 291.73 16.7 % 108.78 197.3 % 34.49 189.5 % 0.43
Q4 2019 359.91 28.7 % 104.68 463.8 % 13.81 117.4 % 0.17
Q1 2020 393.33 27.0 % 85.90 63.8 % 10.64 142.5 % 0.13
Q2 2020 382.00 39.5 % 102.50 69.0 % 6.56 140.7 % 0.08
Q3 2020 373.05 27.9 % 106.96 (1.7 %) 32.46 (5.9 %) 0.41
Q4 2020 367.69 2.2 % 96.57 (7.7 %) 28.04 103.0 % 0.35
Q1 2021 440.34 12.0 % 147.38 71.6 % 70.73 565.0 % 0.88
Q2 2021 356.06 (6.8 %) 137.05 33.7 % 63.33 865.2 % 0.79
Q3 2021 360.15 (3.5 %) 117.77 10.1 % 52.40 61.4 % 0.65
Q4 2021 378.23 2.9 % 126.06 30.5 % 47.11 68.0 % 0.59
Q1 2022 396.15 (10.0 %) 121.99 (17.2 %) 51.29 (27.5 %) 0.64
Q2 2022 338.83 (4.8 %) 105.55 (23.0 %) 37.97 (40.0 %) 0.47
Q3 2022 366.56 1.8 % 116.44 (1.1 %) 42.78 (18.4 %) 0.53
Q4 2022 383.42 1.4 % 108.37 (14.0 %) 41.88 (11.1 %) 0.52
Q1 2023 368.89 (6.9 %) 90.12 (26.1 %) 14.71 (71.3 %) 0.18
Q2 2023 253.05 (25.3 %) 63.21 (40.1 %) 33.29 (12.3 %) 0.42

Profitability

Period Gross Margin OIBDA Margin Net Margin Before Unusual Items
Q1 2014 35.87 % 29.28 % 19.44 %
Q2 2014 35.70 % 28.79 % 19.31 %
Q3 2014 35.23 % 27.83 % 18.29 %
Q4 2014 34.78 % 27.19 % 16.44 %
Q1 2015 34.59 % 26.49 % 16.02 %
Q2 2015 35.09 % 26.86 % 15.93 %
Q3 2015 35.34 % 28.19 % 15.96 %
Q4 2015 35.10 % 27.32 % 16.30 %
Q1 2016 34.39 % 27.09 % 14.75 %
Q2 2016 33.02 % 25.77 % 12.17 %
Q3 2016 30.82 % 22.60 % 7.90 %
Q4 2016 27.45 % 20.51 % 3.47 %
Q1 2017 25.50 % 18.97 % 0.28 %
Q2 2017 23.36 % 17.91 % (2.63 %)
Q3 2017 20.92 % 17.01 % (4.20 %)
Q4 2017 14.76 % 11.65 % (8.99 %)
Q1 2018 10.14 % 7.13 % (14.66 %)
Q2 2018 7.12 % 3.45 % (19.00 %)
Q3 2018 8.10 % 3.31 % (18.41 %)
Q4 2018 10.49 % 4.62 % (20.87 %)
Q1 2019 12.75 % 7.34 % (17.54 %)
Q2 2019 15.12 % 10.13 % (14.31 %)
Q3 2019 20.82 % 10.86 % (7.47 %)
Q4 2019 26.44 % 15.68 % 0.58 %
Q1 2020 27.30 % 15.46 % 3.25 %
Q2 2020 28.16 % 15.38 % 4.59 %
Q3 2020 26.52 % 17.13 % 4.21 %
Q4 2020 25.85 % 17.09 % 5.13 %
Q1 2021 29.01 % 20.06 % 8.82 %
Q2 2021 31.74 % 22.90 % 12.66 %
Q3 2021 32.72 % 24.20 % 14.07 %
Q4 2021 34.42 % 25.07 % 15.22 %
Q1 2022 33.74 % 24.33 % 14.37 %
Q2 2022 31.99 % 22.40 % 12.81 %
Q3 2022 31.76 % 21.65 % 12.11 %
Q4 2022 30.46 % 21.30 % 11.71 %
Q1 2023 28.85 % 19.66 % 9.42 %
Q2 2023 27.56 % 18.53 % 6.40 %


Per Share Data (Riyal)

Compared With The
Period Shares Outstanding (M) EPS (Riyal) Adjusted EPS (Riyal) Book Value (BV)
Q1 2014 80.00 3.93 3.93 20.10
Q2 2014 80.00 3.96 3.93 19.73
Q3 2014 80.00 4.05 3.72 20.72
Q4 2014 80.00 3.88 3.33 21.45
Q1 2015 80.00 3.84 3.29 22.49
Q2 2015 80.00 3.80 3.29 22.25
Q3 2015 80.00 3.60 3.23 23.03
Q4 2015 80.00 3.55 3.38 23.72
Q1 2016 80.00 3.09 2.92 24.33
Q2 2016 80.00 2.43 2.26 23.43
Q3 2016 80.00 1.06 1.35 22.85
Q4 2016 80.00 0.25 0.56 22.18
Q1 2017 80.00 (0.20) 0.04 22.91
Q2 2017 80.00 (0.63) (0.39) 22.21
Q3 2017 80.00 (0.54) (0.61) 21.74
Q4 2017 80.00 (1.21) (1.28) 20.38
Q1 2018 80.00 (1.98) (1.98) 19.74
Q2 2018 80.00 (2.49) (2.49) 19.16
Q3 2018 80.00 (2.47) (2.47) 18.67
Q4 2018 80.00 (2.68) (2.68) 17.69
Q1 2019 80.00 (2.37) (2.37) 17.39
Q2 2019 80.00 (1.99) (1.99) 17.15
Q3 2019 80.00 (1.08) (1.08) 17.47
Q4 2019 80.00 0.09 0.09 17.61
Q1 2020 80.00 0.54 0.54 17.75
Q2 2020 80.00 0.82 0.82 17.83
Q3 2020 80.00 0.79 0.79 18.23
Q4 2020 80.00 0.97 0.97 18.57
Q1 2021 80.00 1.72 1.72 19.54
Q2 2021 80.00 2.43 2.43 20.43
Q3 2021 80.00 2.68 2.68 20.32
Q4 2021 80.00 2.92 2.92 20.90
Q1 2022 80.00 2.68 2.68 20.81
Q2 2022 80.00 2.36 2.36 21.28
Q3 2022 80.00 2.24 2.24 21.32
Q4 2022 80.00 2.17 2.17 21.87
Q1 2023 80.00 1.72 1.72 21.58
Q2 2023 80.00 1.66 1.10 22.00

Multiple Ratios (End of Period Price)

Compared With The
Period P/E Adjusted P/E Price/book
Q1 2014 16.31 16.31 3.19
Q2 2014 16.88 17.01 3.39
Q3 2014 16.94 18.41 3.31
Q4 2014 12.82 14.92 2.32
Q1 2015 12.65 14.74 2.16
Q2 2015 13.04 15.08 2.23
Q3 2015 10.18 11.34 1.59
Q4 2015 8.24 8.66 1.23
Q1 2016 7.71 8.16 0.98
Q2 2016 10.34 11.12 1.07
Q3 2016 15.76 12.42 0.73
Q4 2016 More than 50 36.81 0.94
Q1 2017 NEG More than 50 0.79
Q2 2017 NEG NEG 0.83
Q3 2017 NEG NEG 0.76
Q4 2017 NEG NEG 0.82
Q1 2018 NEG NEG 0.75
Q2 2018 NEG NEG 0.80
Q3 2018 NEG NEG 0.69
Q4 2018 NEG NEG 0.82
Q1 2019 NEG NEG 0.87
Q2 2019 NEG NEG 0.88
Q3 2019 NEG NEG 1.09
Q4 2019 More than 50 More than 50 1.54
Q1 2020 32.83 32.83 0.99
Q2 2020 30.46 30.46 1.40
Q3 2020 41.59 41.59 1.81
Q4 2020 37.03 37.03 1.94
Q1 2021 24.24 24.24 2.14
Q2 2021 23.56 23.56 2.80
Q3 2021 23.31 23.31 3.08
Q4 2021 18.87 18.87 2.64
Q1 2022 19.73 19.73 2.54
Q2 2022 18.55 18.55 2.06
Q3 2022 17.48 17.48 1.84
Q4 2022 13.13 13.13 1.31
Q1 2023 18.29 18.29 1.45
Q2 2023 20.08 30.36 1.51

Business Segments (Million)

Compared With The
Period Ceramic tile and sanitary ware sector Heaters sector Ceramic Pipes Company
Q1 2014 336.95 87.06 -
Q2 2014 353.97 83.66 -
Q3 2014 304.32 81.32 -
Q4 2014 294.58 79.50 -
Q1 2015 365.19 81.86 -
Q2 2015 358.31 86.00 -
Q3 2015 293.40 61.18 -
Q4 2015 307.83 104.20 -
Q1 2016 289.14 83.66 -
Q2 2016 279.81 68.04 -
Q3 2016 180.46 51.98 -
Q4 2016 245.75 104.68 -
Q1 2017 234.30 81.05 -
Q2 2017 210.46 64.23 -
Q3 2017 168.81 55.32 -
Q4 2017 222.02 103.53 -
Q1 2018 186.25 70.23 -
Q2 2018 196.18 45.70 -
Q3 2018 188.46 59.83 -
Q4 2018 206.96 70.31 2.42
Q1 2019 223.48 80.36 5.76
Q2 2019 213.56 54.51 5.78
Q3 2019 225.01 59.78 6.94
Q4 2019 247.44 100.91 11.56
Q1 2020 281.74 100.31 11.28
Q2 2020 301.69 72.87 7.44
Q3 2020 276.51 92.38 4.16
Q4 2020 262.93 98.71 6.05
Q1 2021 308.92 121.25 10.17
Q2 2021 273.62 73.49 8.95
Q3 2021 239.02 114.89 6.23
Q4 2021 323.19 51.27 3.77
Q1 2022 287.53 104.26 4.36
Q2 2022 271.75 62.84 4.24
Q3 2022 270.21 91.45 4.89
Q4 2022 237.58 140.35 5.49
Q1 2023 247.35 114.52 7.02
Q2 2023 186.16 61.43 5.45

Analysts Estimates (Million)

Item Q2 2023 (e) Q2 2023 (a) Change‬
Average 37.50 33.29 (11.2 %)

Estimates vs Actual (Million)

Item Q2 2023 (e) Q2 2023 (a) Change
Hermes 59.00 33.29 (43.6) %
Al Rajhi Capital 16.00 33.29 108.1 %

Current
Market Cap (M Riyal) 2,948.00
Enterprise Value (EV) (M) 3,684.00
Shares Outstanding ((M)) 80.00
EPS ( Riyal) (TTM) (2.62)
Book Value (BV) ( Riyal) 19.00
Par Value ( Riyal) 10.00
Adjusted P/E (Last12) Neg
P/E (TTM) NEG
Price/book 1.94
Return on Average Assets (%) (TTM) (6.87 )
Return on Average Equity (%) (TTM) (12.91 )

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