Prices pressured in Q2, market outlook still positive: Riyadh Cement

In an exclusive interview with Argaam, Al Ayed said the company maintained a healthy profit margin despite market challenges. Riyadh Cement declared a dividend of SAR 1 per share for H1 2025, with a solid profit margin of 37.2%.

He stated that the company managed to maintain its profitability level during H1 2025, despite a decline in net profit, attributing this to various operational factors and cost pressures.

Nonetheless, revenues grew year-on-year (YoY), supported by higher sales volumes, particularly from infrastructure projects in Riyadh and the Central Province. This growth came despite competitive pricing pressures and rising fuel and electricity costs.

He also pointed to increased transportation and logistics costs as key pressures on financial performance, largely due to external operational factors. The company is actively working to offset these challenges through enhanced efficiency.

Demand for cement rose during H1 2025, especially in the Central Province, despite seasonal slowdowns during Ramadan and Hajj. Domestic shipments increased YoY, fueled by large-scale projects, housing developments, and infrastructure linked to Vision 2030.

A rebound in private sector manufacturing also contributed to stronger white cement sales.

Al Ayed said that cement demand in the Central Province grew by around 20% in H1, while overall demand across the Kingdom rose by nearly 14%.

The biggest revenue drivers were major infrastructure projects in Riyadh, alongside housing and other key sectors.

He reaffirmed the company’s commitment to meeting the growing local demand.

Looking forward, Al Ayed expects demand to pick up in Q3 as post-summer activity resumes, construction momentum continues, and cost control efforts remain in place, all of which should support profit margins moving forward.

Riyadh Cement reported a net profit of SAR 133.2 million in the first half of 2025, a decrease of 1% from SAR 134.5 million in H1 2024. In Q2 2025, net earnings stood at SAR 57.5 million, down 11% YoY, according to Argaam’s data.