Riyadh Cement Company delivered a solid QQ3 2024 result profile characterized by meaningful top-line growth and strong profitability. Revenue stood at SAR 203.0 million, up 35.96% year-over-year and 24.05% quarter-over-quarter, while gross margin remained resilient at ~41.3%, supporting an operating margin of ~36.8% and an impressive net margin of ~46.6%. Net income reached SAR 94.6 million, implying a 204% YoY increase and a 46.81% QoQ improvement in bottom-line performance. EBITDA was SAR 74.6 million with an EBITDA margin of 36.76%, underscoring efficient cost control amidst volume growth.
From a cash and balance sheet perspective, Riyadh Cement displays a robust liquidity position: current ratio of 6.02x and quick ratio of 3.26x, with cash and equivalents of SAR 44.1 million and a net cash position (net debt) of roughly SAR -39.97 million. Operating cash flow generated SAR 104.0 million in QQ3 2024, delivering free cash flow of SAR 94.68 million after modest capital expenditure (SAR -9.36 million). The company returned substantial cash to shareholders, with dividends paid totaling SAR -120.54 million during the period, contributing to a negative net change in cash of SAR -34.91 million for the quarter. Total assets stood at SAR 1.844 billion, supported by a strong equity base of SAR 1.699 billion. Leverage remained minimal (short-term debt ~SAR 6.31 million; long-term debt ~SAR 0.93 million; total debt ~SAR 4.09 million reported with net debt negative), underscoring a conservative capital structure and ample liquidity to fund maintenance capex and potential growth initiatives.
Overall, the QQ3 2024 results reinforce Riyadh Cement’s market position in Saudi Arabia and the GCC, with a compelling profitability profile, solid cash generation, and a balanced balance sheet. The key questions for investors relate to the sustainability of the dividend policy given the sizable payout relative to quarterly net income, the trajectory of demand as infrastructure investment cycles modulate, and how management intends to allocate the robust cash position going forward.