Riyadh Cables posts 59% profit leap to SAR 246 mln in 9M 2022; Q3 at SAR 92.7 mln

Riyadh Cables Group Co., which will list soon on the Saudi Exchange (Tadawul), reported a net profit of SAR 246 million in the first nine months of 2022, a rise of 59% from SAR 155 million in the prior-year period.

The nine-month profit growth was driven by a 44% rise year-on-year (YoY) in revenue. The company realized SAR 17.8 million profit from sale of investment properties. It recorded SAR 1.4 million profit from disposal of investments at fair value through other comprehensive income from Nayifat Finance Co.

On the other hand, selling, marketing, general and administrative expenses increased. Finance costs also rose by 92% YoY. The cable producer also incurred foreign exchange (FX) losses of SAR 15 million.

In Q3 2022, net profit more than doubled to SAR 92.7 million, from SAR 36.16 million in Q3 2021. The company’s revenue jumped 41% YoY. Riyadh Cables made SAR 17.8 million profit from sale of investment properties. It recorded SAR 1.4 million profit from disposal of investments at fair value through other comprehensive income from Nayifat Finance Co. It also recorded a leasing income reached SAR 1.3 million.

On the other hand, selling, marketing, general and administrative expenses increased. Finance costs also rose by 124% YoY. The cable producer also incurred foreign exchange (FX) losses of SAR 15 million.

Shareholders’ equity, after minority interest, declined to SAR 1.975 billion as of Sept. 30, 2022, from SAR 2.035 billion a year earlier.

By segment, the company posted revenue of SAR 3.180 billion from copper cables in 2021, compared to SAR 2.983 billion in 2020.

Revenue from aluminum cables reached SAR 909.1 million in 2021, up from SAR 967.7 million a year earlier.

The company’s revenue from fiber optics dropped to SAR 18.8 million in 2021, from SAR 42.5 million in 2020.

Other revenue, comprising of scrap sales and turnkey projects comprising of scrap sales and turnkey projects, reached SAR 145 million in 2021, compared to SAR 93.2 million in 2020.

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