Yamamah Cement published its 4Q11 results on 18 January 2012. All profit lines grew by around 20 per cent Y-o-Y driven by higher volumes as well as stable prices. Most profit lines came in 8-10 per cent above estimates.
Yamamah Cement sales volumes grew 11.4 per cent Y-o-Y in 4Q11 versus 15.6 per cent increase for the sector as a whole.
Gross income grew by 19 per cent Y-o-Y to SR213mn, with EBIT up 19 per cent Y-o-Y to SR197mn driven largely by top-line growth. Net income also increased by 20 per cent Y-o-Y to SR191mn
When compared to estimates, all profit lines came in around 10 per cent above, due largely to lower than expected costs per tonne.
The company announced on October 2011 that a feasibility study to replace five existing lines with a new one was successful and that it would lead to a net increase in capacity of 1.5mn tonnes per year in 2014. However, given the ongoing fuel issues as well as various approvals still pending, which is not factored in this valuation.
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