Saudi-listed manufacturer Yanbu Cement posted a 12.75% year-on-year growth in net profit for the second quarter of the year despite a brief seasonal decline in sales and higher outgoings.

Total net profit for the quarter ended June 30, 2024 reached SAR39.77 million, up from SAR35.27 million in the same period last year, the company said in a filing with the Saudi Stock Exchange (Tadawul) Wednesday.

The annual growth has been due to the increase in sales and revenues, as well as the improvement in short-term investment returns that cushioned the impact of higher administrative, selling, financing and Zakat expenses.

Compared to the previous quarter, however, net profit dipped by 31% as revenues also fell by 17% due to a “seasonal” decline in sales.

“The decrease in the revenues during the current quarter compared to the previous one is due to the seasonal decrease in sales quantities,” the company said.

The company is one of the major cement producers in Saudi Arabia, with a paid-up capital of SR 1.575 billion and capacity of more than 10 million tonnes per year.

(Writing by Cleofe Maceda; editing by Seban Scaria) seban.scaria@lseg.com