Saudi Cement’s H1 profit falls 23% on lower sales, higher expenses

29/07/2018 Argaam Exclusive

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Share Price

43.20
(0.40) (0.92 %)

Saudi Cement Co. (SAUDI CEMENT)

Saudi Cement Co.’s net profit fell 22.5 percent year-on-year (YoY) to SAR 200.3 million in the first half of 2018, on lower sales, higher distribution & marketing expenses, in addition to increase in Islamic financial charges, a decrease in the share of net results of associates and decrease in other revenue.



Financials (M)

Item 6m 2017 6m 2018 Change‬
Revenues 615.80 576.21 (6.4 %)
Gross Income 312.34 265.45 (15.0 %)
Operating Income 267.36 212.60 (20.5 %)
Net Income 258.65 200.28 (22.6 %)
Average Shares 153.00 153.00 -
EPS (Riyals) 1.69 1.31 (22.6 %)

Q2 net profit dropped 38.2 percent YoY to SAR 58 million on lower sales, higher distribution & marketing expenses.

 

 When compared to the previous quarter, Q2 profits declined by 59.2 percent.



Current Quarter Comparison (M)

Compared With The
Item Q2 2017 Q2 2018 Change‬
Revenues 269.45 245.75 (8.8 %)
Gross Income 121.16 96.13 (20.7 %)
Operating Income 99.09 64.13 (35.3 %)
Net Income 93.95 58.05 (38.2 %)
Average Shares 153.00 153.00 -
EPS (Riyals) 0.61 0.38 (38.2 %)


Financial results (Million)

Period Revenues Change Gross Income Change Net Income Change EPS(Riyal)
Q1 2009 350.67 2.3 % 182.93 (3.9 %) 152.00 (12.3 %) 0.99
Q2 2009 357.18 2.0 % 180.97 (4.1 %) 167.66 (2.3 %) 1.10
Q3 2009 307.74 (5.4 %) 148.14 (15.1 %) 123.14 (14.9 %) 0.80
Q4 2009 330.29 36.7 % 167.49 10.8 % 139.59 6.0 % 0.91
Q1 2010 410.89 17.2 % 205.89 12.5 % 176.58 16.2 % 1.15
Q2 2010 420.42 17.7 % 219.99 21.6 % 190.62 13.7 % 1.25
Q3 2010 327.10 6.3 % 163.93 10.7 % 140.28 13.9 % 0.92
Q4 2010 367.74 11.3 % 179.09 6.9 % 152.04 8.9 % 0.99
Q1 2011 423.13 3.0 % 243.65 18.3 % 210.85 19.4 % 1.38
Q2 2011 462.98 10.1 % 243.45 10.7 % 213.76 12.1 % 1.40
Q3 2011 387.26 18.4 % 224.21 36.8 % 195.26 39.2 % 1.28
Q4 2011 442.73 20.4 % 239.69 33.8 % 211.37 39.0 % 1.38
Q1 2012 639.29 51.1 % 352.60 44.7 % 325.56 54.4 % 2.13
Q2 2012 591.03 27.7 % 316.21 29.9 % 290.24 35.8 % 1.90
Q3 2012 433.14 11.8 % 238.40 6.3 % 209.45 7.3 % 1.37
Q4 2012 539.99 22.0 % 322.00 34.3 % 276.54 30.8 % 1.81
Q1 2013 612.75 (4.2 %) 374.11 6.1 % 340.30 4.5 % 2.22
Q2 2013 626.42 6.0 % 339.99 7.5 % 307.14 5.8 % 2.01
Q3 2013 455.13 5.1 % 260.41 9.2 % 229.06 9.4 % 1.50
Q4 2013 492.95 (8.7 %) 309.75 (3.8 %) 247.30 (10.6 %) 1.62
Q1 2014 534.76 (12.7 %) 326.08 (12.8 %) 286.05 (15.9 %) 1.87
Q2 2014 538.38 (14.1 %) 322.82 (5.0 %) 288.30 (6.1 %) 1.88
Q3 2014 425.74 (6.5 %) 264.43 1.5 % 231.72 1.2 % 1.51
Q4 2014 525.71 6.6 % 315.73 1.9 % 268.02 8.4 % 1.75
Q1 2015 550.88 3.0 % 339.26 4.0 % 303.10 6.0 % 1.98
Q2 2015 499.63 (7.2 %) 283.93 (12.0 %) 253.82 (12.0 %) 1.66
Q3 2015 398.31 (6.4 %) 232.75 (12.0 %) 207.57 (10.4 %) 1.36
Q4 2015 483.58 (8.0 %) 280.09 (11.3 %) 175.70 (34.4 %) 1.15
Q1 2016 506.93 (8.0 %) 295.22 (13.0 %) 262.57 (13.4 %) 1.72
Q2 2016 498.78 (0.2 %) 282.36 (0.6 %) 249.46 (1.7 %) 1.63
Q3 2016 375.05 (5.8 %) 232.19 (0.2 %) 202.28 (2.5 %) 1.32
Q4 2016 397.38 (17.8 %) 220.82 (21.2 %) 186.66 6.2 % 1.22
Q1 2017 346.35 (31.7 %) 191.19 (35.2 %) 164.70 (37.3 %) 1.08
Q2 2017 269.45 (46.0 %) 121.16 (57.1 %) 93.95 (62.3 %) 0.61
Q3 2017 250.19 (33.3 %) 115.58 (50.2 %) 87.35 (56.8 %) 0.57
Q4 2017 318.54 (19.8 %) 140.88 (36.2 %) 107.45 (42.4 %) 0.70
Q1 2018 330.46 (4.6 %) 169.32 (11.4 %) 142.23 (13.6 %) 0.93
Q2 2018 245.75 (8.8 %) 96.13 (20.7 %) 58.05 (38.2 %) 0.38

Profitability

Period Gross Margin OIBDA Margin Net Margin Before Unusual Items
Q1 2009 55.01 % 57.42 % 47.34 %
Q2 2009 54.10 % 58.91 % 46.77 %
Q3 2009 52.76 % 60.33 % 45.70 %
Q4 2009 50.49 % 60.28 % 43.27 %
Q1 2010 49.96 % 59.64 % 43.17 %
Q2 2010 50.47 % 59.49 % 42.87 %
Q3 2010 50.87 % 59.53 % 43.47 %
Q4 2010 50.38 % 58.59 % 43.22 %
Q1 2011 52.44 % 59.80 % 45.10 %
Q2 2011 52.51 % 59.80 % 45.35 %
Q3 2011 54.26 % 60.47 % 47.04 %
Q4 2011 55.42 % 61.26 % 48.44 %
Q1 2012 54.86 % 60.51 % 48.96 %
Q2 2012 54.98 % 60.04 % 49.62 %
Q3 2012 54.45 % 59.94 % 49.22 %
Q4 2012 55.79 % 60.94 % 50.00 %
Q1 2013 57.45 % 62.67 % 51.29 %
Q2 2013 57.61 % 62.66 % 51.23 %
Q3 2013 58.03 % 62.90 % 51.61 %
Q4 2013 58.72 % 63.38 % 51.38 %
Q1 2014 58.61 % 63.45 % 50.71 %
Q2 2014 60.31 % 65.26 % 51.98 %
Q3 2014 61.40 % 66.27 % 52.88 %
Q4 2014 60.71 % 65.63 % 53.05 %
Q1 2015 60.87 % 65.62 % 53.47 %
Q2 2015 60.11 % 65.26 % 52.78 %
Q3 2015 59.34 % 64.97 % 52.29 %
Q4 2015 58.79 % 64.64 % 52.08 %
Q1 2016 57.82 % 64.19 % 51.14 %
Q2 2016 57.77 % 64.19 % 50.94 %
Q3 2016 58.46 % 65.04 % 51.29 %
Q4 2016 57.96 % 65.13 % 50.67 %
Q1 2017 57.28 % 65.04 % 49.65 %
Q2 2017 55.13 % 64.08 % 46.65 %
Q3 2017 51.35 % 60.90 % 42.16 %
Q4 2017 48.02 % 57.56 % 38.28 %
Q1 2018 46.80 % 56.48 % 36.88 %
Q2 2018 45.58 % 54.48 % 34.51 %


Per Share Data (Riyal)

Compared With The
Period Shares Outstanding (M) EPS (Riyal) Adjusted EPS (Riyal) Book Value (BV)
Q1 2009 153.00 3.92 3.92 17.26
Q2 2009 153.00 3.90 3.90 18.35
Q3 2009 153.00 3.75 3.75 19.16
Q4 2009 153.00 3.81 3.81 20.07
Q1 2010 153.00 3.97 3.97 18.88
Q2 2010 153.00 4.12 4.12 20.12
Q3 2010 153.00 4.23 4.23 21.05
Q4 2010 153.00 4.31 4.31 22.03
Q1 2011 153.00 4.53 4.53 23.41
Q2 2011 153.00 4.69 4.69 18.80
Q3 2011 153.00 5.05 5.05 20.07
Q4 2011 153.00 5.43 5.43 21.45
Q1 2012 153.00 6.18 6.18 19.07
Q2 2012 153.00 6.68 6.68 17.46
Q3 2012 153.00 6.78 6.78 18.83
Q4 2012 153.00 7.20 7.20 20.64
Q1 2013 153.00 7.30 7.30 19.35
Q2 2013 153.00 7.41 7.41 17.86
Q3 2013 153.00 7.54 7.54 19.35
Q4 2013 153.00 7.35 7.35 20.97
Q1 2014 153.00 6.99 6.99 19.33
Q2 2014 153.00 6.87 6.87 17.38
Q3 2014 153.00 6.88 6.88 18.90
Q4 2014 153.00 7.02 7.02 20.65
Q1 2015 153.00 7.13 7.13 20.12
Q2 2015 153.00 6.91 6.91 18.77
Q3 2015 153.00 6.75 6.75 20.13
Q4 2015 153.00 6.15 6.58 21.28
Q1 2016 153.00 5.88 6.31 19.37
Q2 2016 153.00 5.85 6.28 18.25
Q3 2016 153.00 5.82 6.25 19.57
Q4 2016 153.00 5.89 5.89 20.85
Q1 2017 153.00 5.25 5.25 21.92
Q2 2017 153.00 4.23 4.23 17.54
Q3 2017 153.00 3.48 3.48 18.11
Q4 2017 153.00 2.96 2.96 18.81
Q1 2018 153.00 2.82 2.82 19.74
Q2 2018 153.00 2.58 2.58 16.87

Multiple Ratios (End of Period Price)

Compared With The
Period P/E Adjusted P/E Price/book
Q1 2009 9.77 9.77 2.22
Q2 2009 9.75 9.75 2.07
Q3 2009 11.45 11.45 2.24
Q4 2009 10.07 10.07 1.91
Q1 2010 12.27 12.27 2.58
Q2 2010 10.78 10.78 2.21
Q3 2010 10.47 10.47 2.10
Q4 2010 11.55 11.55 2.26
Q1 2011 11.63 11.63 2.25
Q2 2011 13.66 13.66 3.41
Q3 2011 12.54 12.54 3.15
Q4 2011 13.25 13.25 3.36
Q1 2012 13.67 13.67 4.43
Q2 2012 13.51 13.51 5.17
Q3 2012 12.99 12.99 4.67
Q4 2012 13.19 13.19 4.60
Q1 2013 12.33 12.33 4.65
Q2 2013 13.63 13.63 5.66
Q3 2013 14.33 14.33 5.58
Q4 2013 13.82 13.82 4.84
Q1 2014 15.23 15.23 5.51
Q2 2014 16.78 16.78 6.63
Q3 2014 16.59 16.59 6.04
Q4 2014 13.63 13.63 4.63
Q1 2015 12.58 12.58 4.46
Q2 2015 14.00 14.00 5.15
Q3 2015 10.63 10.63 3.56
Q4 2015 10.56 9.86 3.05
Q1 2016 10.73 9.99 3.26
Q2 2016 10.80 10.05 3.46
Q3 2016 9.55 8.89 2.84
Q4 2016 12.09 12.09 3.42
Q1 2017 11.40 11.40 2.73
Q2 2017 12.27 12.27 2.96
Q3 2017 12.03 12.03 2.31
Q4 2017 16.00 16.00 2.52
Q1 2018 19.93 19.93 2.84
Q2 2018 19.23 19.23 2.94

Analysts Estimates (Million)

Item Q2 2018 (e) Q2 2018 (a) Change‬
Average 113.95 58.05 (49.1 %)

Estimates vs Actual (Million)

Item Q2 2018 (e) Q2 2018 (a) Change
AlJazira Capital 86.80 58.05 (33.1) %
Riyad Capital 99.00 58.05 (41.4) %
Sico 104.00 58.05 (44.2) %
Albilad Capital 105.00 58.05 (44.7) %
SNB Capital 118.00 58.05 (50.8) %
OSOOL AND BAKHEET 120.00 58.05 (51.6) %
U-Capital 121.82 58.05 (52.4) %
Al Rajhi Capital 157.00 58.05 (63.0) %

Current
Market Cap (M Riyal) 6,609.60
Enterprise Value (EV) (M) 6,764.66
Shares Outstanding ((M)) 153.00
EPS ( Riyal) (TTM) 2.42
Book Value (BV) ( Riyal) 14.86
Par Value ( Riyal) 10.00
Adjusted P/E (Last12) 17.82
P/E (TTM) 17.82
Price/book 2.91
Return on Average Assets (%) (TTM) 11.3
Return on Average Equity (%) (TTM) 15.8

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