Riyadh Cement Q1 2026 Net Profit Falls 21% to SAR 60M
Riyadh Cement Co. (3092) posted a net profit of SAR 60 million for Q1 2026, a 21% drop from SAR 76 million a year earlier. Revenue fell 11.1% to SAR 200 million, driven by lower sales volume and selling prices.
Key Numbers
Riyadh Cement Co. (3092) announced its interim financial results for the three months ended March 31, 2026, reporting a net profit of SAR 60 million, down 21% from SAR 76 million in the same period last year. Revenue declined 11.1% to SAR 200 million from SAR 225 million.
Key Financial Results
| Item | Current Quarter (SAR M) | Prior Year Quarter (SAR M) | Change % |
|---|---|---|---|
| Revenue | 200 | 225 | -11.1% |
| Gross Profit | 73 | 86 | -15.1% |
| Operating Profit | 62 | 77 | -19.5% |
| Net Profit | 60 | 76 | -21.1% |
| EPS (SAR) | 0.50 | 0.63 | -20.6% |
Highlights from the Statement
The company attributed the YoY decline to lower sales volume, reduced average selling prices, and higher cost of sales due to increased fuel prices, despite efforts to boost production to lower average costs and lower Zakat expenses.
On a sequential basis, net profit remained flat at SAR 60 million, while revenue fell 10.3% from the previous quarter (SAR 223 million), as the negative impact from lower sales and higher fuel costs was offset by other operational efficiencies.
Guidance
No specific forward guidance was provided in the release.
Stock Impact
The results are likely to have a muted negative reaction as they align with market expectations, though continued revenue and profit declines could pressure the stock in the near term.
What This Means for Investors
Riyadh Cement's performance reflects sector challenges including weak demand and pricing pressure, compounded by rising fuel costs. Investors should monitor domestic demand trends and the company's efficiency initiatives.
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