Logo of Umm Al-Qura Cement Co.
Sales of Umm Al-Qura Cement Co. declined nearly 7% to SAR 59.48 million in the second quarter of 2022 from SAR 63.90 million in the year-earlier period.
Likewise, gross profit margins fell to more than a three-year low at 29% in Q2 2022, compared to 44% and 35% in Q2 2021 and Q1 2022, respectively.
The company's average selling prices decreased by 14.5% YoY to SAR 161.2/ton in Q2 2022 from SAR 188.5/ton.
Meanwhile, the average production cost rose by 7.1% to SAR 124.6/ton in Q2 2022, compared to SAR 116.4/ton in Q2 2021.
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Company’s Selling Prices vs. Cost |
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Period |
Sales Value (SAR mln) |
Average Selling Price (SAR/ton) |
Average Cost (SAR/ton) |
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2021 |
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|
Q1 |
90.4 |
191.5 |
(111.4) |
|
Q2 |
63.9 |
188.5 |
(116.4) |
|
Q3 |
57.0 |
181.4 |
(120.5) |
|
Q4 |
67.6 |
167.7 |
(116.0) |
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2022 |
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|
Q1 |
65.6 |
163.6 |
(114.2) |
|
Q2 |
59.5 |
161.2 |
(124.6) |
Umm Al-Qura Cement’s market share grew to 3.3% of the sector's total sales in Q2 2022, compared to 2.9% in Q2 2021. This was due to an 8.8% increase in sales volumes.
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Sales & Market Share |
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Period |
Sector’s Total Sales (’000 tons) |
Company's Total Sales (’000 tons) |
Market Share (%) |
|
2021 |
|||
|
Q1 |
15,819 |
472 |
3.0 % |
|
Q2 |
11,818 |
339 |
2.9 % |
|
Q3 |
11,808 |
314 |
2.7 % |
|
Q4 |
13,992 |
403 |
2.9 % |
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2022 |
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|
Q1 |
14,223 |
401 |
2.8 % |
|
Q2 |
11,058 |
369 |
3.3% |
The company's stockpile amounted to 2.55 million tons by the end of June 2022, accounting for 7.2% of the sector's total clinker inventory.
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Umm Al-Qura’s Share in Clinker Inventory (mln tons) |
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Period |
Sector’s Total Clinker Inventory |
Clinker Inventory (Umm Al-Qura) |
Company's Share |
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2021 |
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|
March, 2021 |
32.72 |
2.05 |
6.3% |
|
June 2021 |
32.91 |
2.22 |
6.7% |
|
Sept. 2021 |
34.55 |
2.35 |
6.8% |
|
Dec. 2021 |
34.99 |
2.42 |
6.9% |
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2022 |
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March, 2022 |
33.69 |
2.55 |
7.6% |
|
June 2022 |
35.66 |
2.55 |
7.2% |
Umm Al-Qura Cement’s monthly average sales stood at 124,000 tons. Accordingly, the company needs around 21 months to offload its stockpiles.
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Clinker Inventory (Umm Al-Qura) |
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|
Inventory Volume |
Monthly Selling Average |
Inventory Offload Period (month) |
|
2.55 |
124 |
21 |
The company reported a net profit of SAR 8.3 million in Q2 2022, a 54.8% decrease from SAR 18.41 million in the year-ago period. The cement producer cited lower sales volume and reduced prices for the profit decline, in addition to a 16.7% increase in production cost, as well as higher selling and marketing expenses.
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Income Statement (SAR mln) |
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|
Period |
Q2 2021 |
Q3 2021 |
Q4 2021 |
Q1 2022 |
Q2 2022 |
|
Sales |
63.9 |
57.0 |
67.6 |
65.6 |
59.5 |
|
Gross Profit Margin |
43.7% |
39.3% |
36.3% |
35.3% |
29.5% |
|
Expenses |
(3.5) |
(3.3) |
(3.7) |
(3.4) |
(4.0) |
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Financing Charges |
(4.3) |
(4.7) |
(3.6) |
(4.4) |
(3.2) |
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Net Profit |
18.4 |
12.5 |
16.1 |
13.9 |
8.3 |
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