Riyadh Cement expects high demand to continue in Q1 2025, boasts 6.7% market share: CEO

In an interview with Argaam, Al-Ayed said that despite the challenges of fluctuating fuel and shipping prices, the Saudi-listed company remains optimistic about maintaining a strong performance, leveraging the robust urbanization momentum witnessed by the Kingdom, especially in Riyadh.

Cement demand witnessed a remarkable increase of more than 10% YoY in the fourth quarter of 2024, amid strong demand from mega projects in Riyadh, which reflected positively on the company's sales, according to the top executive.

He further indicated that the fourth-quarter average selling prices rose to SAR 200 per ton, marking growth of 7% QoQ and 31% YoY, reflecting improved market conditions and stable pricing.

Moreover, Riyadh Cement’s black clinker stockpiles exceeded 600,000 tons, while the white clinker inventory reached more than 350,000 tons, Al-Ayed stated.

Commenting on the recent financial results, the CEO said the company saw a qualitative leap in its profits, reaching SAR 310.4 million by the end of 2024, compared to SAR 188.7 million in 2023. This uptrend was driven by a 25% hike in selling prices, which in turn boosted revenues by 23%, in addition to returns on short-term investments.

Additionally, the redemption of SAR 25 million from the Zakat, Tax & Customs Authority (ZATCA) further spurred the company's bottom line, Al-Ayed explained, noting that the strong performance reflects improved demand and market stability.

Riyadh Cement has maintained its market foothold, with a market share of 6.7% by the end of 2024, solidifying its competitive position in the sector, according to the CEO.