Riyadh Steel 2022 earnings up 13% to SAR 5.1 mln

Logo of Riyadh Steel Co.

Riyadh Steel Co., which is set to list on Nomu-Parallel Market, reported a 13% rise in 2022 net profit to SAR 5.1 million (SAR 1.02 per share), compared to SAR 4.5 million a year earlier.

The profit increase was mainly spurred by higher sales and a 12% decline in general and administrative expenses, as the goodwill amortization expenses amounted to SAR 3.7 million in 2022 due to the acquisition of Baydaa Al Yamamah Industrial Co.

Product Sales

The company owns three main factories, through which it manufactures and sells three main products. Angle bar sales accounted for 68%, or SAR 106.2 million of total sales, an increase of more than 6%. Meanwhile, flat bar sales rose by 27% to SAR 39.4 million by the end of 2022.

Domestic sales represented 96% of total sales in 2022, compared with 92% a year ago.

*Metal pieces of different lengths and thicknesses formed by bending one end of the iron 

**Metal pieces of different lengths and flat shapes

***Scrap iron and iron coils

During the previous three years, the company’s sales rose at a compound annual growth rate (CAGR) of 19% from SAR 110.8 million to SAR 156.1 million by the end of 2022. Accordingly, net profit increased at a CAGR of 60% to SAR 5.1 million.

The following table shows the development of the most important items of the income statement over the past three years and CAGR rates:

Financial Position

The company's financial statements showed that net receivables continued to decline from 2020 and the collection process from customers improved. Meanwhile, short-term loans decreased after the company repaid SAR 12.9 million of short loans during 2022.

The debt-to-equity ratio hit 4.84% at the end of 2022, compared to 21.51% in 2021.

The following table shows the development of the key items in the statement of financial position since 2020: