Southern Cement net profit falls 15% to SAR 270 mln in H1 2021

Southern Cement net profit falls 15% to SAR 270 mln in H1 2021

11/08/2021 Argaam Exclusive

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Southern Province Cement Co. posted a net profit after Zakat and tax of SAR 270 million for H1 2021, a slump of 15%, from SAR 318 million in the prior-year period, driven by a sales revenue decline of 8.78%, a 49.82% drop in other income and a 94.54% increase in Zakat provisions.



Financials (M)

Item 6m 2020 6m 2021 Change‬
Revenues 796.55 726.67 (8.8 %)
Gross Income 345.06 287.42 (16.7 %)
Operating Income 318.57 261.81 (17.8 %)
Net Income 318.36 256.61 (19.4 %)
Average Shares 140.00 140.00 -
EPS (Riyals) 2.27 1.83 (19.4 %)

Q2 2021 net profit stood at SAR 95 million, a decline of 30% year-on-year (YoY), due to a 15.34% fall in sales revenue and a 17.25% tumble in sales volumes. Other income also decreased by 44.41%.

 

On a sequential basis, the second-quarter earnings dropped 45.7%.



Current Quarter Comparison (M)

Compared With The
Item Q2 2020 Q2 2021 Change‬
Revenues 339.34 287.33 (15.3 %)
Gross Income 152.40 103.27 (32.2 %)
Operating Income 137.38 90.79 (33.9 %)
Net Income 134.88 87.47 (35.2 %)
Average Shares 140.00 140.00 -
EPS (Riyals) 0.96 0.62 (35.2 %)


Financial results (Million)

Period Revenues Change Gross Income Change Operating Income Change
Q1 2012 497.81 14.0 % 300.74 24.7 % 288.08 25.4 %
Q2 2012 474.15 6.7 % 269.36 7.0 % 261.23 9.2 %
Q3 2012 354.18 (0.3 %) 205.74 4.3 % 197.32 6.7 %
Q4 2012 479.13 5.4 % 275.07 3.1 % 261.33 2.7 %
Q1 2013 486.72 (2.2 %) 283.22 (5.8 %) 272.86 (5.3 %)
Q2 2013 508.93 7.3 % 308.04 14.4 % 295.22 13.0 %
Q3 2013 368.15 3.9 % 200.86 (2.4 %) 188.27 (4.6 %)
Q4 2013 411.34 (14.1 %) 220.73 (19.8 %) 216.98 (17.0 %)
Q1 2014 495.41 1.8 % 239.68 (15.4 %) 225.44 (17.4 %)
Q2 2014 516.76 1.5 % 304.39 (1.2 %) 296.01 0.3 %
Q3 2014 377.67 2.6 % 186.58 (7.1 %) 175.11 (7.0 %)
Q4 2014 488.51 18.8 % 264.49 19.8 % 251.88 16.1 %
Q1 2015 558.97 12.8 % 290.50 21.2 % 271.23 20.3 %
Q2 2015 531.85 2.9 % 281.81 (7.4 %) 271.54 (8.3 %)
Q3 2015 418.90 10.9 % 215.84 15.7 % 205.10 17.1 %
Q4 2015 537.56 10.0 % 321.20 21.4 % 311.47 23.7 %
Q1 2016 549.33 (1.7 %) 302.56 4.2 % 287.23 5.9 %
Q2 2016 492.64 (7.4 %) 266.67 (5.4 %) 256.18 (5.7 %)
Q3 2016 379.76 (9.3 %) 183.92 (14.8 %) 175.02 (14.7 %)
Q4 2016 354.32 (34.1 %) 177.55 (44.7 %) 152.62 (51.0 %)
Q1 2017 303.39 (44.8 %) 122.13 (59.6 %) 105.36 (63.3 %)
Q2 2017 242.75 (50.7 %) 99.96 (62.5 %) 87.78 (65.7 %)
Q3 2017 215.60 (43.2 %) 65.02 (64.6 %) 56.80 (67.5 %)
Q4 2017 302.08 (14.7 %) 136.59 (23.1 %) 122.12 (20.0 %)
Q1 2018 273.84 (9.7 %) 121.96 (0.1 %) 107.37 1.9 %
Q2 2018 177.84 (26.7 %) 50.88 (49.1 %) 39.90 (54.5 %)
Q3 2018 196.07 (9.1 %) 18.21 (72.0 %) 10.26 (81.9 %)
Q4 2018 239.97 (20.6 %) 70.65 (48.3 %) 57.10 (53.2 %)
Q1 2019 341.95 24.9 % 137.34 12.6 % 125.63 17.0 %
Q2 2019 275.65 55.0 % 113.07 122.3 % 97.56 144.5 %
Q3 2019 286.01 45.9 % 114.15 526.9 % 102.51 899.5 %
Q4 2019 396.67 65.3 % 191.26 170.7 % 175.84 208.0 %
Q1 2020 457.21 33.7 % 192.67 40.3 % 181.19 44.2 %
Q2 2020 339.34 23.1 % 152.40 34.8 % 137.38 40.8 %
Q3 2020 425.77 48.9 % 170.36 49.2 % 159.57 55.7 %
Q4 2020 430.79 8.6 % 199.43 4.3 % 186.29 5.9 %
Q1 2021 439.34 (3.9 %) 184.15 (4.4 %) 171.02 (5.6 %)
Q2 2021 287.33 (15.3 %) 103.27 (32.2 %) 90.79 (33.9 %)


Profit Performance (Million)

Period Net Income Change EPS(Riyal) Extraordinary Income/Expense Net Profit Before Unusual Items EPS Before XO Items
Q1 2012 284.33 25.9 % 2.03 - 284.33 2.03
Q2 2012 261.73 9.5 % 1.87 - 261.73 1.87
Q3 2012 200.39 11.5 % 1.43 - 200.39 1.43
Q4 2012 253.76 1.1 % 1.81 - 253.76 1.81
Q1 2013 268.75 (5.5 %) 1.92 - 268.75 1.92
Q2 2013 297.21 13.6 % 2.12 - 297.21 2.12
Q3 2013 186.61 (6.9 %) 1.33 - 186.61 1.33
Q4 2013 253.52 (0.1 %) 1.81 40.70 212.82 1.52
Q1 2014 221.01 (17.8 %) 1.58 - 221.01 1.58
Q2 2014 294.20 (1.0 %) 2.10 - 294.20 2.10
Q3 2014 284.92 52.7 % 2.04 112.50 172.42 1.23
Q4 2014 245.30 (3.2 %) 1.75 - 245.30 1.75
Q1 2015 266.00 20.4 % 1.90 - 266.00 1.90
Q2 2015 270.35 (8.1 %) 1.93 - 270.35 1.93
Q3 2015 202.21 (29.0 %) 1.44 - 202.21 1.44
Q4 2015 300.05 22.3 % 2.14 (6.30) 306.35 2.19
Q1 2016 283.20 6.5 % 2.02 - 283.20 2.02
Q2 2016 267.98 (0.9 %) 1.91 - 267.98 1.91
Q3 2016 173.56 (14.2 %) 1.24 - 173.56 1.24
Q4 2016 152.77 (49.1 %) 1.09 - 152.77 1.09
Q1 2017 104.57 (63.1 %) 0.75 - 104.57 0.75
Q2 2017 94.94 (64.6 %) 0.68 - 94.94 0.68
Q3 2017 57.16 (67.1 %) 0.41 - 57.16 0.41
Q4 2017 113.56 (25.7 %) 0.81 - 113.56 0.81
Q1 2018 101.74 (2.7 %) 0.73 - 101.74 0.73
Q2 2018 36.05 (62.0 %) 0.26 - 36.05 0.26
Q3 2018 5.37 (90.6 %) 0.04 - 5.37 0.04
Q4 2018 51.62 (54.5 %) 0.37 - 51.62 0.37
Q1 2019 119.87 17.8 % 0.86 - 119.87 0.86
Q2 2019 90.77 151.8 % 0.65 - 90.77 0.65
Q3 2019 90.29 1581.4 % 0.64 (6.28) 96.57 0.69
Q4 2019 161.78 213.4 % 1.16 (12.00) 173.78 1.24
Q1 2020 183.48 53.1 % 1.31 - 183.48 1.31
Q2 2020 134.88 48.6 % 0.96 - 134.88 0.96
Q3 2020 149.77 65.9 % 1.07 - 149.77 1.07
Q4 2020 141.25 (12.7 %) 1.01 (36.00) 177.25 1.27
Q1 2021 169.14 (7.8 %) 1.21 - 169.14 1.21
Q2 2021 87.47 (35.2 %) 0.62 - 87.47 0.62

Profitability

Period Gross Margin OIBDA Margin Net Margin Before Unusual Items
Q1 2012 58.02 % 63.18 % 54.46 %
Q2 2012 58.04 % 63.75 % 54.82 %
Q3 2012 58.55 % 64.52 % 56.01 %
Q4 2012 58.21 % 63.56 % 55.40 %
Q1 2013 57.60 % 63.07 % 54.88 %
Q2 2013 58.62 % 63.43 % 55.78 %
Q3 2013 57.91 % 63.39 % 54.60 %
Q4 2013 57.06 % 62.96 % 54.38 %
Q1 2014 54.34 % 60.22 % 51.44 %
Q2 2014 53.90 % 60.32 % 51.05 %
Q3 2014 52.82 % 58.65 % 49.99 %
Q4 2014 52.98 % 59.17 % 49.67 %
Q1 2015 53.86 % 59.73 % 50.36 %
Q2 2015 52.29 % 58.10 % 48.75 %
Q3 2015 52.68 % 58.47 % 49.24 %
Q4 2015 54.19 % 60.01 % 51.04 %
Q1 2016 55.04 % 60.98 % 52.12 %
Q2 2016 55.36 % 61.33 % 53.03 %
Q3 2016 54.83 % 62.04 % 52.63 %
Q4 2016 52.40 % 60.56 % 49.41 %
Q1 2017 49.03 % 58.65 % 45.67 %
Q2 2017 45.58 % 57.62 % 41.07 %
Q3 2017 41.63 % 54.16 % 36.69 %
Q4 2017 39.83 % 52.53 % 34.80 %
Q1 2018 40.95 % 54.44 % 35.52 %
Q2 2018 38.63 % 52.73 % 31.83 %
Q3 2018 34.49 % 48.64 % 27.03 %
Q4 2018 29.48 % 45.20 % 21.94 %
Q1 2019 28.99 % 44.26 % 22.28 %
Q2 2019 32.20 % 45.91 % 25.40 %
Q3 2019 38.06 % 50.71 % 31.38 %
Q4 2019 42.75 % 53.65 % 36.99 %
Q1 2020 43.17 % 53.24 % 38.47 %
Q2 2020 43.97 % 54.22 % 39.80 %
Q3 2020 43.65 % 53.26 % 39.65 %
Q4 2020 43.24 % 52.40 % 39.04 %
Q1 2021 43.19 % 52.27 % 38.59 %
Q2 2021 41.51 % 50.71 % 36.86 %


Per Share Data (Riyal)

Compared With The
Period Shares Outstanding (M) EPS (Riyal) Adjusted EPS (Riyal) Book Value (BV)
Q1 2012 140.00 6.82 6.82 17.44
Q2 2012 140.00 6.98 6.98 19.31
Q3 2012 140.00 7.12 7.12 17.74
Q4 2012 140.00 7.14 7.14 19.55
Q1 2013 140.00 7.03 7.03 17.47
Q2 2013 140.00 7.29 7.29 19.60
Q3 2013 140.00 7.19 7.19 17.93
Q4 2013 140.00 7.19 6.90 19.73
Q1 2014 140.00 6.85 6.55 17.31
Q2 2014 140.00 6.82 6.53 19.41
Q3 2014 140.00 7.53 6.43 19.45
Q4 2014 140.00 7.47 6.66 21.15
Q1 2015 140.00 7.79 6.99 20.05
Q2 2015 140.00 7.62 6.81 21.98
Q3 2015 140.00 7.03 7.03 20.93
Q4 2015 140.00 7.42 7.46 23.06
Q1 2016 140.00 7.54 7.59 21.52
Q2 2016 140.00 7.52 7.57 23.49
Q3 2016 140.00 7.32 7.36 22.23
Q4 2016 140.00 6.27 6.27 23.25
Q1 2017 140.00 4.99 4.99 24.00
Q2 2017 140.00 3.76 3.76 22.43
Q3 2017 140.00 2.92 2.92 21.84
Q4 2017 140.00 2.64 2.64 22.66
Q1 2018 140.00 2.62 2.62 23.38
Q2 2018 140.00 2.20 2.20 23.14
Q3 2018 140.00 1.83 1.83 22.18
Q4 2018 140.00 1.39 1.39 22.60
Q1 2019 140.00 1.52 1.52 23.46
Q2 2019 140.00 1.91 1.91 23.10
Q3 2019 140.00 2.52 2.56 22.50
Q4 2019 140.00 3.31 3.44 23.62
Q1 2020 140.00 3.76 3.89 24.93
Q2 2020 140.00 4.07 4.21 23.64
Q3 2020 140.00 4.50 4.59 22.46
Q4 2020 140.00 4.35 4.61 23.43
Q1 2021 140.00 4.25 4.51 24.68
Q2 2021 140.00 3.91 4.17 22.86

Multiple Ratios (End of Period Price)

Compared With The
Period P/E Adjusted P/E Price/book
Q1 2012 13.50 13.50 5.27
Q2 2012 14.26 14.26 5.15
Q3 2012 13.86 13.86 5.57
Q4 2012 14.00 14.00 5.12
Q1 2013 14.29 14.29 5.75
Q2 2013 14.27 14.27 5.31
Q3 2013 14.85 14.85 5.95
Q4 2013 15.34 15.99 5.59
Q1 2014 16.32 17.05 6.46
Q2 2014 17.00 17.76 5.98
Q3 2014 15.11 17.68 5.85
Q4 2014 14.65 16.41 5.17
Q1 2015 12.21 13.62 4.74
Q2 2015 12.90 14.42 4.47
Q3 2015 11.03 11.03 3.70
Q4 2015 9.44 9.38 3.04
Q1 2016 9.68 9.62 3.39
Q2 2016 10.14 10.08 3.25
Q3 2016 8.71 8.66 2.87
Q4 2016 13.13 13.13 3.54
Q1 2017 12.56 12.56 2.61
Q2 2017 14.41 14.41 2.41
Q3 2017 17.08 17.08 2.29
Q4 2017 18.30 18.30 2.14
Q1 2018 19.00 19.00 2.13
Q2 2018 18.61 18.61 1.77
Q3 2018 18.79 18.79 1.55
Q4 2018 26.49 26.49 1.63
Q1 2019 30.25 30.25 1.96
Q2 2019 25.79 25.79 2.13
Q3 2019 22.67 22.28 2.54
Q4 2019 19.49 18.74 2.73
Q1 2020 14.50 14.01 2.19
Q2 2020 13.33 12.91 2.30
Q3 2020 15.29 15.01 3.06
Q4 2020 19.37 18.29 3.60
Q1 2021 20.70 19.52 3.57
Q2 2021 22.34 20.97 3.82

Analysts Estimates (Million)

Item Q2 2021 (e) Q2 2021 (a) Change‬
Average 107.70 87.47 (18.8 %)

Estimates vs Actual (Million)

Item Q2 2021 (e) Q2 2021 (a) Change
Al Rajhi Capital 85.00 87.47 2.9 %
OSOOL AND BAKHEET 95.20 87.47 (8.1) %
AlJazira Capital 107.30 87.47 (18.5) %
SNB Capital 116.00 87.47 (24.6) %
Riyad Capital 135.00 87.47 (35.2) %

Current
Market Cap (M Riyal) 4,641.00
Enterprise Value (EV) (M) 4,850.68
Shares Outstanding ((M)) 140.00
EPS ( Riyal) (TTM) 1.57
Book Value (BV) ( Riyal) 23.36
Par Value ( Riyal) 10.00
Adjusted P/E (Last12) 22.93
P/E (TTM) 21.16
Price/book 1.42
Return on Average Assets (%) (TTM) 5.4
Return on Average Equity (%) (TTM) 6.8

Share Price

33.15
(0.35) (1.04 %)

Southern Province Cement Co. (SPCC)


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