Saudi Cement Co.’s Q2 2019 net profit of SAR 92 million topped Riyad Capital’s estimates of SAR 62.8 million.
The profit rise was driven by higher sales volumes, along with a rise in net income from associates and other revenue, Riyad Capital said in an earnings note.
Meanwhile, gross profit margins dropped 500 basis points (bps) quarter-on-quarter on higher cost per ton, despite a year-on-year (YoY) rise of 200 bps.
Higher revenue and net income on a YoY basis were attributed to improved selling prices.
Riyad Capital added that it remained “neutral” on the stock, upping its target price to SAR 64 from SAR 56.
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