Hail Cement turns to profit of SAR 24.5 mln in H1 2023; Q2 at SAR 6 mln

Hail Cement turns to profit of SAR 24.5 mln in H1 2023; Q2 at SAR 6 mln

06/08/2023 Argaam Exclusive

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Hail Cement Co. reported a net profit of SAR 24.5 million in H1 2023, against a loss of SAR 13.7 million a year earlier.



Financials (M)

Item 6m 2022 6m 2023 Change‬
Revenues 164.94 121.63 (26.3 %)
Gross Income 16.32 29.82 82.7 %
Operating Income 4.98 19.32 287.9 %
Net Income (13.72) 24.49 278.4 %
Average Shares 97.90 97.90 -
EPS (Riyals) (0.14) 0.25 278.4 %

The company attributed the shift to profit to lower general, administrative, and Zakat expenses, in addition to achieving profits from financial investments at fair value and high returns on Murabaha deposits during the current period.

 

This is despite the decrease in quantity and value of sales during the current period compared to the same period of the previous year.

 

The cement producer reported a net profit of SAR 5.98 million in Q2 2023, compared to a loss of SAR 6.83 million in Q2 2022.

 

Net profit fell 67.7% from SAR 18.5 million in Q1 2023 as quantity and value of sales declined due to the decrease in demand and the coincidence of the current quarter with the holy month of Ramadan and the holidays, in addition to the increase in the cost of sales.



Current Quarter Comparison (M)

Compared With The
Item Q2 2022 Q2 2023 Change‬
Revenues 96.32 59.78 (37.9 %)
Gross Income 17.96 7.23 (59.8 %)
Operating Income 12.34 3.20 (74.1 %)
Net Income (6.83) 5.98 187.5 %
Average Shares 97.90 97.90 -
EPS (Riyals) (0.07) 0.06 187.5 %

Shareholders’ equity, after minority interest, decreased to SAR 1.06 billion as of June 30, 2023, from SAR 1.09 billion a year earlier.



Financial results (Million)

Period Revenues Change Gross Income Change Operating Income Change
Q1 2014 83.48 - 44.23 - 37.55 -
Q2 2014 100.71 84.2 % 54.60 107.2 % 48.88 165.1 %
Q3 2014 79.78 73.5 % 32.33 31.5 % 26.46 57.9 %
Q4 2014 91.81 57.3 % 52.85 77.5 % 45.20 56.8 %
Q1 2015 87.43 4.7 % 48.51 9.7 % 39.54 5.3 %
Q2 2015 99.68 (1.0 %) 38.01 (30.4 %) 31.02 (36.5 %)
Q3 2015 77.73 (2.6 %) 36.60 13.2 % 30.21 14.2 %
Q4 2015 91.52 (0.3 %) 41.16 (22.1 %) 33.81 (25.2 %)
Q1 2016 89.45 2.3 % 46.41 (4.3 %) 39.32 (0.6 %)
Q2 2016 75.09 (24.7 %) 34.50 (9.2 %) 26.50 (14.6 %)
Q3 2016 58.22 (25.1 %) 31.56 (13.8 %) 25.22 (16.5 %)
Q4 2016 49.36 (46.1 %) 22.81 (44.6 %) 14.94 (55.8 %)
Q1 2017 44.44 (50.3 %) 17.04 (63.3 %) 10.33 (73.7 %)
Q2 2017 32.16 (57.2 %) 11.11 (67.8 %) 3.87 (85.4 %)
Q3 2017 36.89 (36.6 %) 9.27 (70.6 %) 3.11 (87.7 %)
Q4 2017 51.05 3.4 % 13.36 (41.4 %) 6.93 (53.6 %)
Q1 2018 48.73 9.7 % 9.55 (43.9 %) 3.91 (62.2 %)
Q2 2018 41.27 28.3 % (10.15) (191.4 %) (15.82) (508.9 %)
Q3 2018 41.00 11.2 % (10.23) (210.4 %) (15.86) (610.5 %)
Q4 2018 64.98 27.3 % 21.96 64.4 % 12.51 80.5 %
Q1 2019 68.57 40.7 % 27.17 184.5 % 21.52 450.9 %
Q2 2019 53.43 29.5 % 6.17 160.8 % 0.34 102.1 %
Q3 2019 62.21 51.7 % 16.30 259.3 % 11.02 169.5 %
Q4 2019 90.19 38.8 % 41.79 90.3 % 36.64 192.9 %
Q1 2020 119.46 74.2 % 55.02 102.5 % 48.19 123.9 %
Q2 2020 66.24 24.0 % 28.47 361.7 % 23.90 7033.7 %
Q3 2020 71.68 15.2 % 30.24 85.5 % 24.19 119.4 %
Q4 2020 78.90 (12.5 %) 33.93 (18.8 %) 29.77 (18.8 %)
Q1 2021 81.89 (31.5 %) 30.91 (43.8 %) 23.84 (50.5 %)
Q2 2021 65.91 (0.5 %) 20.45 (28.2 %) 15.03 (37.1 %)
Q3 2021 56.08 (21.8 %) 12.33 (59.2 %) 6.38 (73.6 %)
Q4 2021 49.42 (37.4 %) (0.42) (101.2 %) (4.05) (113.6 %)
Q1 2022 68.62 (16.2 %) (1.64) (105.3 %) (7.36) (130.9 %)
Q2 2022 96.32 46.1 % 17.96 (12.2 %) 12.34 (17.9 %)
Q3 2022 103.28 84.2 % 16.63 34.9 % 11.14 74.6 %
Q4 2022 97.25 96.8 % 30.53 7352.7 % 26.15 746.5 %
Q1 2023 61.85 (9.9 %) 22.59 1476.0 % 16.06 318.2 %
Q2 2023 59.78 (37.9 %) 7.23 (59.8 %) 3.20 (74.1 %)


Profit Performance (Million)

Period Net Income Change EPS(Riyal) Extraordinary Income/Expense Net Profit Before Unusual Items EPS Before XO Items
Q1 2014 35.10 352.0 % 0.36 - 35.10 0.36
Q2 2014 46.00 148.0 % 0.47 - 46.00 0.47
Q3 2014 25.10 48.2 % 0.26 - 25.10 0.26
Q4 2014 40.86 41.3 % 0.42 - 40.86 0.42
Q1 2015 37.50 6.8 % 0.38 - 37.50 0.38
Q2 2015 28.64 (37.7 %) 0.29 - 28.64 0.29
Q3 2015 17.45 (30.5 %) 0.18 - 17.45 0.18
Q4 2015 29.95 (26.7 %) 0.31 - 29.95 0.31
Q1 2016 32.30 (13.9 %) 0.33 - 32.30 0.33
Q2 2016 26.84 (6.3 %) 0.27 - 26.84 0.27
Q3 2016 19.31 10.7 % 0.20 - 19.31 0.20
Q4 2016 21.21 (29.2 %) 0.22 - 21.21 0.22
Q1 2017 8.28 (74.4 %) 0.08 - 8.28 0.08
Q2 2017 2.66 (90.1 %) 0.03 - 2.66 0.03
Q3 2017 0.65 (96.6 %) 0.01 - 0.65 0.01
Q4 2017 3.96 (81.3 %) 0.04 - 3.96 0.04
Q1 2018 4.23 (48.9 %) 0.04 - 4.23 0.04
Q2 2018 (18.00) (776.9 %) (0.18) - (18.00) (0.18)
Q3 2018 (18.31) (2917.4 %) (0.19) - (18.31) (0.19)
Q4 2018 7.05 78.3 % 0.07 - 7.05 0.07
Q1 2019 22.55 433.4 % 0.23 - 22.55 0.23
Q2 2019 (1.92) 89.3 % (0.02) - (1.92) (0.02)
Q3 2019 7.59 141.5 % 0.08 - 7.59 0.08
Q4 2019 30.84 337.2 % 0.32 - 30.84 0.32
Q1 2020 40.22 78.4 % 0.41 - 40.22 0.41
Q2 2020 21.75 1232.1 % 0.22 - 21.75 0.22
Q3 2020 22.83 200.6 % 0.23 - 22.83 0.23
Q4 2020 22.26 (27.8 %) 0.23 (8.40) 30.67 0.31
Q1 2021 25.87 (35.7 %) 0.26 - 25.87 0.26
Q2 2021 15.35 (29.4 %) 0.16 - 15.35 0.16
Q3 2021 5.96 (73.9 %) 0.06 - 5.96 0.06
Q4 2021 (4.77) (121.4 %) (0.05) - (4.77) (0.05)
Q1 2022 (6.89) (126.6 %) (0.07) - (6.89) (0.07)
Q2 2022 (6.83) (144.5 %) (0.07) (10.00) 3.17 0.03
Q3 2022 7.82 31.3 % 0.08 - 7.82 0.08
Q4 2022 22.32 568.4 % 0.23 - 22.32 0.23
Q1 2023 18.51 368.6 % 0.19 - 18.51 0.19
Q2 2023 5.98 187.5 % 0.06 - 5.98 0.06

Profitability

Period Gross Margin OIBDA Margin Net Margin Before Unusual Items
Q1 2014 51.53 % 68.21 % 41.03 %
Q2 2014 53.09 % 68.44 % 44.00 %
Q3 2014 49.93 % 64.55 % 41.92 %
Q4 2014 51.72 % 62.17 % 41.34 %
Q1 2015 52.34 % 61.76 % 41.55 %
Q2 2015 47.87 % 56.81 % 36.83 %
Q3 2015 49.34 % 58.03 % 34.89 %
Q4 2015 46.10 % 55.67 % 31.86 %
Q1 2016 45.25 % 55.58 % 30.23 %
Q2 2016 47.54 % 58.59 % 31.92 %
Q3 2016 48.88 % 60.93 % 34.49 %
Q4 2016 49.71 % 64.00 % 36.62 %
Q1 2017 46.63 % 63.96 % 33.30 %
Q2 2017 44.80 % 66.65 % 27.94 %
Q3 2017 36.98 % 61.87 % 20.14 %
Q4 2017 30.86 % 56.53 % 9.45 %
Q1 2018 25.64 % 51.43 % 6.81 %
Q2 2018 12.38 % 37.31 % (5.15 %)
Q3 2018 1.39 % 26.68 % (15.45 %)
Q4 2018 5.68 % 27.48 % (12.77 %)
Q1 2019 13.32 % 32.91 % (3.11 %)
Q2 2019 19.77 % 38.41 % 4.11 %
Q3 2019 28.73 % 44.70 % 14.15 %
Q4 2019 33.32 % 49.32 % 21.52 %
Q1 2020 36.66 % 49.64 % 23.59 %
Q2 2020 41.87 % 54.82 % 29.70 %
Q3 2020 44.74 % 57.48 % 33.27 %
Q4 2020 43.91 % 56.96 % 34.34 %
Q1 2021 41.36 % 55.85 % 33.85 %
Q2 2021 38.72 % 52.57 % 31.74 %
Q3 2021 34.52 % 48.96 % 27.53 %
Q4 2021 24.98 % 41.67 % 16.74 %
Q1 2022 12.80 % 30.95 % 4.02 %
Q2 2022 10.44 % 26.38 % (0.94 %)
Q3 2022 10.24 % 24.19 % (0.21 %)
Q4 2022 17.37 % 28.83 % 7.23 %
Q1 2023 24.45 % 35.56 % 14.45 %
Q2 2023 23.89 % 36.38 % 16.96 %


Per Share Data (Riyal)

Compared With The
Period Shares Outstanding (M) EPS (Riyal) Adjusted EPS (Riyal) Book Value (BV)
Q1 2014 97.90 1.02 1.02 10.18
Q2 2014 97.90 1.30 1.30 10.65
Q3 2014 97.90 1.38 1.38 10.41
Q4 2014 97.90 1.50 1.50 10.83
Q1 2015 97.90 1.53 1.53 11.21
Q2 2015 97.90 1.35 1.35 10.90
Q3 2015 97.90 1.27 1.27 10.48
Q4 2015 97.90 1.16 1.16 10.79
Q1 2016 97.90 1.11 1.11 10.62
Q2 2016 97.90 1.09 1.09 10.91
Q3 2016 97.90 1.11 1.11 10.61
Q4 2016 97.90 1.02 1.02 10.79
Q1 2017 97.90 0.77 0.77 10.88
Q2 2017 97.90 0.53 0.53 10.45
Q3 2017 97.90 0.33 0.33 10.46
Q4 2017 97.90 0.16 0.16 10.50
Q1 2018 97.90 0.12 0.12 10.54
Q2 2018 97.90 (0.09) (0.09) 10.32
Q3 2018 97.90 (0.29) (0.29) 10.13
Q4 2018 97.90 (0.26) (0.26) 10.22
Q1 2019 97.90 (0.07) (0.07) 10.44
Q2 2019 97.90 0.10 0.10 10.42
Q3 2019 97.90 0.36 0.36 10.50
Q4 2019 97.90 0.60 0.60 10.79
Q1 2020 97.90 0.78 0.78 11.21
Q2 2020 97.90 1.03 1.03 11.44
Q3 2020 97.90 1.18 1.18 11.67
Q4 2020 97.90 1.09 1.18 11.86
Q1 2021 97.90 0.95 1.03 12.15
Q2 2021 97.90 0.88 0.97 11.80
Q3 2021 97.90 0.71 0.80 11.86
Q4 2021 97.90 0.43 0.43 11.28
Q1 2022 97.90 0.10 0.10 11.21
Q2 2022 97.90 (0.13) (0.03) 11.14
Q3 2022 97.90 (0.11) (0.01) 10.78
Q4 2022 97.90 0.17 0.27 10.84
Q1 2023 97.90 0.43 0.53 11.03
Q2 2023 97.90 0.56 0.56 10.84

Multiple Ratios (End of Period Price)

Compared With The
Period P/E Adjusted P/E Price/book
Q1 2014 23.17 23.17 2.31
Q2 2014 19.93 19.93 2.43
Q3 2014 21.24 21.24 2.82
Q4 2014 15.19 15.19 2.11
Q1 2015 14.75 14.75 2.01
Q2 2015 15.87 15.87 1.96
Q3 2015 13.27 13.27 1.61
Q4 2015 12.38 12.38 1.33
Q1 2016 11.22 11.22 1.17
Q2 2016 11.41 11.41 1.14
Q3 2016 9.38 9.38 0.98
Q4 2016 11.75 11.75 1.11
Q1 2017 14.43 14.43 1.03
Q2 2017 18.38 18.38 0.92
Q3 2017 26.87 26.87 0.86
Q4 2017 62.36 62.36 0.94
Q1 2018 78.97 78.97 0.88
Q2 2018 NEG NEG 0.88
Q3 2018 NEG NEG 0.79
Q4 2018 NEG NEG 0.77
Q1 2019 NEG NEG 0.80
Q2 2019 93.67 93.67 0.86
Q3 2019 26.62 26.62 0.91
Q4 2019 20.22 20.22 1.13
Q1 2020 12.30 12.30 0.86
Q2 2020 11.90 11.90 1.07
Q3 2020 13.36 13.36 1.35
Q4 2020 15.29 14.18 1.41
Q1 2021 18.37 16.85 1.43
Q2 2021 21.53 19.62 1.61
Q3 2021 23.91 21.33 1.43
Q4 2021 30.66 30.66 1.18
Q1 2022 More than 100 More than 100 1.30
Q2 2022 NEG NEG 1.23
Q3 2022 NEG NEG 1.17
Q4 2022 64.48 40.07 1.01
Q1 2023 26.60 21.47 1.05
Q2 2023 22.13 22.13 1.16

Current
Market Cap (M Riyal) 1,135.64
Enterprise Value (EV) (M) 1,030.72
Shares Outstanding ((M)) 97.90
EPS ( Riyal) (TTM) 0.22
Book Value (BV) ( Riyal) 10.02
Par Value ( Riyal) 10.00
Adjusted P/E (Last12) More than 100
P/E (TTM) More than 100
Price/book 1.16
Return on Average Assets (%) (TTM) 1.9
Return on Average Equity (%) (TTM) 2.0

Share Price

11.60
0.02 0.17 %

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