Strong growth in the financial performance of Al Yamamah Cement
Al Yamamah Cement Company, one of the leading companies in the building materials sector in the Kingdom of Saudi Arabia, announced strong financial results during the fiscal year 2025, as its net profit recorded a remarkable increase of 14.8% to reach SAR 482.8 million, compared to profits of SAR 420.7 million in 2024. This growth reflects the company’s ability to adapt to market changes and take advantage of the opportunities available in the Saudi economy.
According to the official statement published by the company on the Saudi Stock Exchange website “Tadawul”, the main reasons behind this increase in net profit are due to two main factors:
- Increased sales volume: The company experienced an increase in demand for its products, which directly led to growth in sales volume.
- Other revenue growth: The company was able to generate additional revenue from the sale of some production line accessories and gas turbines from its old plant, which represents a strategic step to improve asset efficiency.
This positive performance came despite the company facing several challenges, including a decrease in average selling price, higher fuel costs, and increased administrative and sales expenses. The company also established provisions for the impairment of spare parts and equipment and a provision for expected credit losses, demonstrating its prudent financial policy.
Economic context and Vision 2030
This growth in Al Yamamah Cement's profits comes amidst a construction boom in Saudi Arabia, driven by the ambitious Vision 2030 projects. Founded in 1961, the company is a key player in meeting the increasing demand for cement, the lifeblood of the construction sector. It directly benefits from major projects such as NEOM, the Red Sea Project, and Qiddiya, as well as the significant expansion of infrastructure and housing projects across the Kingdom.
The company’s performance reflects its ability to keep pace with this growing demand, especially after the completion of the project to move its factory from its old location south of Riyadh to a new location in the Harimla Governorate, which aims to increase operational efficiency and adhere to modern environmental standards.
Dividend distributions and their impact on investors
Reflecting these positive results, the Board of Directors of Al Yamamah Cement Company recommended distributing cash dividends to shareholders for the fiscal year 2025. The company explained that the total amount recommended for distribution is SAR 202.5 million, which will be distributed to 202.5 million shares eligible for dividends.
The dividend per share is one riyal, representing 10% of the share's nominal value. Shareholders registered at the end of the second trading day following the entitlement date will be entitled to the dividends. The dividend distribution date will be announced later, subject to approval by the General Assembly.
