Northern Cement H1 2023 profit down 14% to SAR 41.3 mln; Q2 at SAR 19.6 mln

Northern Cement H1 2023 profit down 14% to SAR 41.3 mln; Q2 at SAR 19.6 mln

13/08/2023 Argaam Exclusive

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Northern Region Cement Co. reported a net profit of SAR 41.3 million in H1 2023, a drop of 14% from SAR 48.1 million a year earlier.



Financials (M)

Item 6m 2022 6m 2023 Change‬
Revenues 266.68 339.03 27.1 %
Gross Income 96.01 84.08 (12.4 %)
Operating Income 62.60 52.90 (15.5 %)
Net Income 47.87 40.93 (14.5 %)
Average Shares 180.00 180.00 -
EPS (Riyals) 0.27 0.23 (14.5 %)

The cement producer cited a rise in the cost of sales and lower selling prices. In addition, it reported higher financing costs (FCs) as SAIBOR dramatically increased. On the other hand, Northern Cement recorded higher returns from foreign investments.



Current Quarter Comparison (M)

Compared With The
Item Q2 2022 Q2 2023 Change‬
Revenues 133.42 157.94 18.4 %
Gross Income 49.54 40.14 (19.0 %)
Operating Income 32.88 25.24 (23.3 %)
Net Income 24.64 19.52 (20.7 %)
Average Shares 180.00 180.00 -
EPS (Riyals) 0.14 0.11 (20.7 %)

Northern Cement posted a 20.8% drop in Q2 2023 net profit to SAR 19.59 million, compared to SAR 24.74 million in Q2 2022. This was as a result of higher cost of goods sold, lower selling prices and soaring FCs amid increased SAIBOR.

 

Net profit also fell by 10% from SAR 21.76 million in Q1 2023 on lower sales revenue and selling prices in the second quarter.

 

Shareholders’ equity, excluding minority interest, grew to SAR 2.22 billion as of June 30, 2023, from SAR 2.21 billion a year earlier.

View More Financial Results

 


Financial results (Million)

Period Revenues Change Gross Income Change Operating Income Change
Q1 2014 308.53 69.7 % 116.34 104.5 % 68.15 51.4 %
Q2 2014 229.75 (10.2 %) 88.24 (9.7 %) 67.55 (20.8 %)
Q3 2014 203.39 21.5 % 78.10 31.4 % 59.00 21.0 %
Q4 2014 257.47 4.1 % 110.72 (21.1 %) 68.20 7.8 %
Q1 2015 253.13 (18.0 %) 100.51 (13.6 %) 59.65 (12.5 %)
Q2 2015 324.34 41.2 % 133.49 51.3 % 79.31 17.4 %
Q3 2015 274.92 35.2 % 107.83 38.1 % 63.49 7.6 %
Q4 2015 277.41 7.7 % 89.57 (19.1 %) 52.06 (23.7 %)
Q1 2016 231.14 (8.7 %) 76.07 (24.3 %) 53.78 (9.8 %)
Q2 2016 251.67 (22.4 %) 95.05 (28.8 %) 55.66 (29.8 %)
Q3 2016 141.39 (48.6 %) 52.91 (50.9 %) 36.10 (43.1 %)
Q4 2016 126.62 (54.4 %) 98.31 9.8 % 51.64 (0.8 %)
Q1 2017 124.14 (46.3 %) 45.50 (40.2 %) 31.28 (41.9 %)
Q2 2017 110.31 (56.2 %) 34.54 (63.7 %) 20.66 (62.9 %)
Q3 2017 104.85 (25.8 %) 46.66 (11.8 %) 22.30 (38.2 %)
Q4 2017 123.37 (2.6 %) 46.77 (52.4 %) 26.76 (48.2 %)
Q1 2018 113.14 (8.9 %) 23.92 (47.4 %) 9.07 (71.0 %)
Q2 2018 119.63 8.4 % 30.70 (11.1 %) 5.45 (73.6 %)
Q3 2018 99.09 (5.5 %) 39.45 (15.4 %) 17.72 (20.5 %)
Q4 2018 53.08 (57.0 %) 45.91 (1.8 %) 22.28 (16.7 %)
Q1 2019 124.32 9.9 % 51.12 113.7 % 26.98 197.4 %
Q2 2019 144.25 20.6 % 49.12 60.0 % 27.35 401.7 %
Q3 2019 194.69 96.5 % 61.09 54.8 % 37.85 113.5 %
Q4 2019 210.12 295.9 % 55.00 19.8 % 33.69 51.2 %
Q1 2020 180.17 44.9 % 53.88 5.4 % 30.96 14.7 %
Q2 2020 132.04 (8.5 %) 39.91 (18.8 %) 24.14 (11.7 %)
Q3 2020 172.90 (11.2 %) 48.71 (20.3 %) 30.10 (20.5 %)
Q4 2020 166.38 (20.8 %) 53.63 (2.5 %) 41.64 23.6 %
Q1 2021 161.87 (10.2 %) 53.87 0.0 % 36.41 17.6 %
Q2 2021 145.32 10.1 % 42.29 6.0 % 26.60 10.2 %
Q3 2021 128.10 (25.9 %) 42.02 (13.7 %) 21.50 (28.6 %)
Q4 2021 126.62 (23.9 %) 61.68 15.0 % 36.26 (12.9 %)
Q1 2022 133.26 (17.7 %) 46.47 (13.7 %) 29.72 (18.4 %)
Q2 2022 133.42 (8.2 %) 49.54 17.1 % 32.88 23.6 %
Q3 2022 166.26 29.8 % 62.00 47.6 % 32.82 52.7 %
Q4 2022 185.02 46.1 % 76.93 24.7 % 44.76 23.4 %
Q1 2023 181.09 35.9 % 43.95 (5.4 %) 27.66 (6.9 %)
Q2 2023 157.94 18.4 % 40.14 (19.0 %) 25.24 (23.3 %)


Profit Performance (Million)

Period Net Income Change EPS(Riyal) Extraordinary Income/Expense Net Profit Before Unusual Items EPS Before XO Items
Q1 2014 60.76 42.0 % 0.34 - 60.76 0.34
Q2 2014 62.09 (31.2 %) 0.34 - 62.09 0.34
Q3 2014 51.35 2.6 % 0.29 - 51.35 0.29
Q4 2014 25.81 (50.0 %) 0.14 (30.02) 55.83 0.31
Q1 2015 50.63 (16.7 %) 0.28 - 50.63 0.28
Q2 2015 64.03 3.1 % 0.36 (7.00) 71.03 0.39
Q3 2015 52.64 2.5 % 0.29 - 52.64 0.29
Q4 2015 39.62 53.5 % 0.22 (0.68) 40.30 0.22
Q1 2016 42.91 (15.3 %) 0.24 - 42.91 0.24
Q2 2016 48.66 (24.0 %) 0.27 - 48.66 0.27
Q3 2016 30.09 (42.8 %) 0.17 - 30.09 0.17
Q4 2016 30.60 (22.8 %) 0.17 3.40 27.20 0.15
Q1 2017 16.33 (62.0 %) 0.09 - 16.33 0.09
Q2 2017 8.26 (83.0 %) 0.05 - 8.26 0.05
Q3 2017 12.51 (58.4 %) 0.07 - 12.51 0.07
Q4 2017 15.27 (50.1 %) 0.08 - 15.27 0.08
Q1 2018 1.45 (91.1 %) 0.01 5.75 (4.31) (0.02)
Q2 2018 (6.62) (180.1 %) (0.04) - (6.62) (0.04)
Q3 2018 5.00 (60.1 %) 0.03 - 5.00 0.03
Q4 2018 13.03 (14.7 %) 0.07 - 13.03 0.07
Q1 2019 15.42 966.3 % 0.09 - 15.42 0.09
Q2 2019 13.97 311.0 % 0.08 - 13.97 0.08
Q3 2019 26.08 422.1 % 0.14 - 26.08 0.14
Q4 2019 36.80 182.4 % 0.20 16.81 19.99 0.11
Q1 2020 27.43 77.9 % 0.15 8.41 19.03 0.11
Q2 2020 13.93 (0.3 %) 0.08 - 13.93 0.08
Q3 2020 21.52 (17.5 %) 0.12 - 21.52 0.12
Q4 2020 44.62 21.3 % 0.25 - 44.62 0.25
Q1 2021 31.66 15.4 % 0.18 - 31.66 0.18
Q2 2021 20.91 50.1 % 0.12 - 20.91 0.12
Q3 2021 18.36 (14.7 %) 0.10 - 18.36 0.10
Q4 2021 35.13 (21.3 %) 0.20 7.74 27.39 0.15
Q1 2022 23.24 (26.6 %) 0.13 - 23.24 0.13
Q2 2022 24.64 17.8 % 0.14 - 24.64 0.14
Q3 2022 27.56 50.1 % 0.15 - 27.56 0.15
Q4 2022 36.59 4.2 % 0.20 - 36.59 0.20
Q1 2023 21.40 (7.9 %) 0.12 - 21.40 0.12
Q2 2023 19.52 (20.7 %) 0.11 - 19.52 0.11

Profitability

Period Gross Margin OIBDA Margin Net Margin Before Unusual Items
Q1 2014 42.27 % 37.12 % 25.80 %
Q2 2014 42.44 % 36.65 % 23.55 %
Q3 2014 42.78 % 36.24 % 22.83 %
Q4 2014 39.37 % 37.45 % 23.02 %
Q1 2015 40.01 % 39.04 % 23.30 %
Q2 2015 40.72 % 36.61 % 22.04 %
Q3 2015 40.77 % 35.37 % 20.73 %
Q4 2015 38.18 % 32.38 % 18.99 %
Q1 2016 36.73 % 31.96 % 18.67 %
Q2 2016 35.60 % 31.16 % 17.82 %
Q3 2016 34.78 % 33.94 % 17.96 %
Q4 2016 42.93 % 37.47 % 19.83 %
Q1 2017 45.32 % 39.39 % 18.99 %
Q2 2017 46.02 % 43.10 % 16.30 %
Q3 2017 48.29 % 33.57 % 13.80 %
Q4 2017 37.49 % 36.23 % 11.32 %
Q1 2018 33.63 % 32.16 % 7.03 %
Q2 2018 32.12 % 28.22 % 3.66 %
Q3 2018 30.94 % 30.79 % 2.05 %
Q4 2018 36.36 % 31.27 % 1.84 %
Q1 2019 42.20 % 35.40 % 6.77 %
Q2 2019 44.11 % 38.83 % 11.27 %
Q3 2019 40.14 % 36.52 % 13.27 %
Q4 2019 32.13 % 29.77 % 11.21 %
Q1 2020 30.04 % 27.88 % 10.84 %
Q2 2020 29.27 % 27.80 % 11.02 %
Q3 2020 28.41 % 24.72 % 10.71 %
Q4 2020 30.10 % 27.48 % 15.21 %
Q1 2021 30.97 % 29.15 % 17.65 %
Q2 2021 30.71 % 29.29 % 18.36 %
Q3 2021 31.88 % 33.16 % 19.21 %
Q4 2021 35.57 % 35.16 % 17.50 %
Q1 2022 36.09 % 35.94 % 16.86 %
Q2 2022 38.30 % 37.68 % 17.96 %
Q3 2022 39.26 % 37.04 % 18.38 %
Q4 2022 38.02 % 34.50 % 18.13 %
Q1 2023 34.91 % 31.68 % 16.55 %
Q2 2023 32.31 % 29.46 % 15.22 %


Per Share Data (Riyal)

Compared With The
Period Shares Outstanding (M) EPS (Riyal) Adjusted EPS (Riyal) Book Value (BV)
Q1 2014 180.00 1.40 1.40 11.62
Q2 2014 180.00 1.25 1.25 11.96
Q3 2014 180.00 1.25 1.25 11.25
Q4 2014 180.00 1.11 1.28 11.39
Q1 2015 180.00 1.05 1.22 11.67
Q2 2015 180.00 1.07 1.27 11.13
Q3 2015 180.00 1.07 1.28 10.82
Q4 2015 180.00 1.15 1.19 11.04
Q1 2016 180.00 1.11 1.15 10.78
Q2 2016 180.00 1.02 1.03 11.05
Q3 2016 180.00 0.90 0.90 10.77
Q4 2016 180.00 0.85 0.83 11.04
Q1 2017 180.00 0.70 0.68 11.13
Q2 2017 180.00 0.47 0.45 11.18
Q3 2017 180.00 0.38 0.36 11.24
Q4 2017 180.00 0.29 0.29 11.33
Q1 2018 180.00 0.21 0.18 11.34
Q2 2018 180.00 0.13 0.09 11.30
Q3 2018 180.00 0.08 0.05 11.33
Q4 2018 180.00 0.07 0.04 11.41
Q1 2019 180.00 0.15 0.15 11.49
Q2 2019 180.00 0.26 0.26 11.58
Q3 2019 180.00 0.38 0.38 11.72
Q4 2019 180.00 0.51 0.42 11.92
Q1 2020 180.00 0.58 0.44 12.06
Q2 2020 180.00 0.58 0.44 12.13
Q3 2020 180.00 0.55 0.41 12.00
Q4 2020 180.00 0.60 0.55 12.25
Q1 2021 180.00 0.62 0.62 12.14
Q2 2021 180.00 0.66 0.66 12.27
Q3 2021 180.00 0.64 0.64 12.12
Q4 2021 180.00 0.59 0.55 12.27
Q1 2022 180.00 0.54 0.50 12.41
Q2 2022 180.00 0.56 0.52 12.29
Q3 2022 180.00 0.61 0.57 12.44
Q4 2022 180.00 0.62 0.62 12.38
Q1 2023 180.00 0.61 0.61 12.49
Q2 2023 180.00 0.58 0.58 12.35

Multiple Ratios (End of Period Price)

Compared With The
Period P/E Adjusted P/E Price/book
Q1 2014 17.07 17.07 2.06
Q2 2014 20.30 20.30 2.12
Q3 2014 21.54 21.54 2.40
Q4 2014 19.00 16.52 1.85
Q1 2015 21.16 18.27 1.91
Q2 2015 20.72 17.37 1.98
Q3 2015 15.78 13.24 1.56
Q4 2015 13.00 12.53 1.35
Q1 2016 11.15 10.74 1.14
Q2 2016 12.23 12.19 1.13
Q3 2016 11.76 11.71 0.98
Q4 2016 15.17 15.51 1.16
Q1 2017 15.21 15.63 0.95
Q2 2017 20.90 21.76 0.89
Q3 2017 25.26 26.59 0.84
Q4 2017 36.71 36.71 0.94
Q1 2018 50.51 59.67 0.93
Q2 2018 76.05 More than 100 0.85
Q3 2018 More than 100 More than 100 0.76
Q4 2018 More than 100 More than 100 0.73
Q1 2019 59.18 59.18 0.77
Q2 2019 34.20 34.20 0.78
Q3 2019 27.64 27.64 0.90
Q4 2019 23.10 28.24 0.99
Q1 2020 15.67 20.67 0.75
Q2 2020 17.11 22.57 0.82
Q3 2020 21.63 28.96 1.00
Q4 2020 20.36 22.09 0.99
Q1 2021 20.98 20.98 1.07
Q2 2021 28.51 28.51 1.53
Q3 2021 25.33 25.33 1.34
Q4 2021 22.78 24.57 1.09
Q1 2022 26.81 29.11 1.17
Q2 2022 20.71 22.42 0.95
Q3 2022 18.30 19.68 0.90
Q4 2022 17.32 17.32 0.87
Q1 2023 18.23 18.23 0.89
Q2 2023 20.49 20.49 0.97

Business Segments (Million)

Compared With The
Period Clinker Cement White Cement White Clinker Pozzolana

Analysts Estimates (Million)

Item Q2 2023 (e) Q2 2023 (a) Change‬
Average 23.00 19.52 (15.1 %)

Estimates vs Actual (Million)

Item Q2 2023 (e) Q2 2023 (a) Change
Hermes 23.00 19.52 (15.1) %


Financial Ratios
Current
Market Cap (M Riyal) 1,686.60
Enterprise Value (EV) (M) 2,488.74
Shares Outstanding ((M)) 180.00
EPS ( Riyal) (TTM) 0.41
Book Value (BV) ( Riyal) 12.65
Par Value ( Riyal) 10.00
Adjusted P/E (Last12) More than 100
P/E (TTM) 22.92
Price/book 0.74
Return on Average Assets (%) (TTM) 2.1
Return on Average Equity (%) (TTM) 3.3
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Share Price

Northern Region Cement Co.
9.37
0.07 0.75 %

Northern Region Cement Co. (NORTHERN CEMENT)

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