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.
Key Performance Indicators
Revenue
Increasing
203.01M
QoQ: 24.05% | YoY: 35.96%
Gross Profit
Increasing
83.91M
41.33% margin
QoQ: 5.76% | YoY: 97.50%
Operating Income
Increasing
74.62M
QoQ: 7.79% | YoY: 121.71%
Net Income
Increasing
94.58M
QoQ: 46.81% | YoY: 204.48%
EPS
Increasing
0.79
QoQ: 46.30% | YoY: 203.85%
Revenue Trend
Margin Analysis
Financial Highlights
Revenue: SAR 203.0 million, YoY +35.96%, QoQ +24.05% | Gross Profit: SAR 83.91 million, Gross Margin 41.33%, YoY +97.50%, QoQ +5.76% | EBITDA: SAR 74.63 million, EBITDA Margin 36.76% | Operating Income: SAR 74.62 million, Operating Margin 36.76% | Net Income: SAR 94.58 million, Net Margin 46.59%, YoY +204.48%, QoQ +46.81% | EPS: SAR 0.79, Diluted SAR 0.79 | Cash Flow: Operating Cash Flow SAR 104.04 million; Free Cash Flow SAR 94.68 million; Capex SAR -9.36 million | Dividends Paid: SAR -120.54 million | Balance Sheet: Total Assets SAR 1,844.43 million; Total Liabilities SAR 1,455.55 million; Total Equity SAR 1,698.88 million | Liquidity: Cash SAR 44.06 million; Short-term investments SAR 90.63 million; Total Current Assets SAR 669.75 million; Total Current Liabilities SAR 111.26 million; Current Ratio 6.02x; Quick Ratio 3.26x; Cash Ratio 0.396x | Leverage: Short-term Debt SAR 6.31 million; Long-term Debt SAR 0.93 million; Total Debt SAR 4.09 million; Net Debt SAR -39.97 million | Asset Utilization: Receivables Turnover not disclosed; Inventory Turnover not disclosed; Days Inventory Outstanding 232.18 days; DSO not disclosed; Cash Conversion Cycle 219.19 days | Valuation Snapshot (as indicated): P/E 8.53x; P/B 1.90x; P/S 15.90x; Dividend Yield 3.73%; EV/EBITDA not provided; Debt/Equity 0.0024x.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
203.01M
35.96%
24.05%
Gross Profit
83.91M
97.50%
5.76%
Operating Income
74.62M
121.71%
7.79%
Net Income
94.58M
204.48%
46.81%
EPS
0.79
203.85%
46.30%
Key Financial Ratios
Gross Profit Margin
Good
41.30%
Gross profit margin is healthy and competitive within industry standards
Operating Profit Margin
Excellent
36.80%
Operating margin is exceptional, indicating strong pricing power and operational efficiency
Net Profit Margin
Excellent
46.60%
Net profit margin is exceptional, indicating strong pricing power and operational efficiency
Return on Assets
Fair
5.13%
Return on assets is acceptable but below top-tier companies
Return on Equity
Fair
5.57%
Return on equity is acceptable but below top-tier companies
Current Ratio
Strong
6.02
Current ratio indicates excellent liquidity and financial flexibility
Debt to Equity
Conservative
0.00
Debt-to-equity shows conservative leverage and low financial risk
P/E Ratio
Value
8.53x
P/E ratio suggests potential undervaluation or stable earnings
Price to Book
Fair Value
1.90x
Price-to-book ratio reasonable for profitable companies
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