On 2026-08-10 15:57:49 (Saudi Time), Najran Cement Co.(3002.SA) announced its Interim financial results for the six months ended on June 30, 2026.

Year-on-Year Performance Drivers

For the six-month period ending 30 June 2026, sales/revenue declined 5.052% YoY to SAR 246.81 million (from SAR 259.94 million), primarily driven by a decrease in average sales prices despite an increase in sales volume. Net profit attributable to shareholders fell sharply by 44.919% YoY to SAR 11.96 million (from SAR 21.71 million), as the impact of lower average sales prices was compounded by an increase in other expenses, which more than offset the benefit from higher sales volumes. It is also noted that the external auditor issued a qualified conclusion due to inability to obtain sufficient evidence to evaluate the reasonableness of key assumptions used in the impairment assessment of property, plant and equipment with a carrying amount of SAR 1,914 million, introducing additional uncertainty around the reported figures.

Quarter-on-Quarter Performance Drivers

QoQ revenue edged up 0.626% to SAR 123.79 million (from SAR 123.02 million in the previous quarter), driven by higher sales volume despite a decline in average sales prices. However, net profit attributable to shareholders fell 4.207% QoQ to SAR 5.85 million (from SAR 6.11 million), as the benefit of increased sales volume was more than offset by a rise in other expenses.

Other Items

The external auditor issued a qualified conclusion (reported as "Conservation" in the announcement) for the six-month period ended 30 June 2026, citing an inability to obtain sufficient appropriate audit evidence to evaluate the reasonableness of key assumptions and forecasts used by management and its external consultant in the impairment assessment of property, plant and equipment with a carrying amount of SAR 1,914 million as of 30 June 2026 (SAR 1,944 million as of 31 December 2025), as disclosed in Note 7 to the interim condensed consolidated financial information. The auditors noted that the impairment assessment was triggered by indicators including a decline in the Group's net profit compared to prior years and underutilization of the main production lines, and that management concluded no impairment existed; however, auditors were unable to determine whether any adjustments might be necessary to the interim condensed consolidated financial information. As an other matter, the auditors noted that the Group's consolidated financial statements for the year ended 31 December 2025 were audited by another auditor who expressed a modified opinion in their report dated 18 Shawwal 1447H (corresponding to 6 April 2026). Total shareholders' equity stood at SAR 2,046,937 thousand as of 30 June 2026, compared to SAR 2,028,178 thousand in the same period of the prior year, a change of 0.924%. Earnings per share for the current six-month period were SAR 0.07, compared to SAR 0.13 in the same period of the prior year. The company stated in the announcement that it "affirms to its shareholders its continued commitment to applying best accounting policies and practices through the adoption of internal policies and procedures developed by specialized, accredited consulting firms and subject to periodic review and update," and that it "relies on independent certified experts and valuers for key technical estimates and significant valuations, enhancing the reliability and accuracy of its financial results."

Original announcement:

https://www.saudiexchange.sa/wps/portal/saudiexchange/newsandreports/issuer-news/issuer-announcements/issuer-announcements-details/?anId=97477&anCat=1&cs=3002&locale=ar

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