Net Profit Decrease in Q2 2023

The financial statements of Saudi Ceramic Company showed a 12.31% decrease in net profit after zakat and taxes in the second quarter of 2023 to 33.29 million rials compared to 37.96 million rials in the same quarter of the previous year.

Quarterly Profit Increase

On a quarterly basis, profit increased by 12.37% in the second quarter compared to a profit of 14.7 million rials in the first quarter of this year.

Reasons for Profit Decline

The company said in a statement to Tadawul Saudi Arabia today, Tuesday, that the year-on-year decline in profits is due to lower sales, particularly in the tile sector, as a result of the negative impact of tiles. prices to compete in the market with the continuing presence of a decrease in demand.

Impact of Production Costs and Financing

She pointed out that the results of the current quarter were also affected by an increase in the cost of production, which affected the gross margin. The increase in interest rates also led to an increase in the cost of financing. On the other hand, in the current quarter the company achieved capital gains from non-operating activities.

Profit Drop in the First Half

The company recorded a 49.2% drop in profit for the first half to 48 million rials from 89.26 million rials in the same half of 2022.