Saudi Ceramic turns to net profit of SAR 49.7 mln in 9M 2020
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Saudi Ceramic Co. swung to a net profit after Zakat and tax of SAR 49.7 million for the first nine months of 2020, against a net loss of SAR 6.7 million a year earlier, driven by higher sales volumes and prices, improved other income, along with a decline in general and administrative expenses. The company’s results were also backed by lower finance charges.
The third-quarter net profit after Zakat and tax declined 6% to SAR 32.5 million, compared to a net profit of SAR 34.5 million in Q3 2019, due to adjustment of the asset life depreciation approved in Q3 2019, which fully reflected on Q3 2020 results.
When compared to the previous quarter, the ceramic and tile producer’s net profit surged over four times from SAR 6.6 million. The profit hike was spurred by the SAR 21 million provisions allocated in the previous quarter. In addition, the profit rise was also attributed to improved profit margins, a rise in other income and lower finance charges.