On 2026-08-03 08:02:39 (Saudi Time), Saudi Ceramic Co. 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 increased by SAR 86.14 million (12.766% YoY) to SAR 760.87 million, driven by higher sales volumes of water heaters and ceramic tiles as well as increased average selling prices of tile products, particularly porcelain tiles, with both domestic sales up SAR 77.6 million (12.4%) and export sales up SAR 8.6 million (16.8%). Net profit attributable to shareholders declined sharply by 68.145% YoY to SAR 42.66 million from SAR 133.92 million, primarily because the prior-year period included non-recurring items totalling approximately SAR 127.7 million — comprising an insurance claim settlement of SAR 120 million, Zakat differences of SAR 7.7 million, and an impairment reversal of SAR 3.5 million — which inflated the prior-year base. Excluding these non-recurring items, underlying net profit actually improved by SAR 35.8 million, supported by a gross profit margin expansion to 32.2% from 25.6%, attributable to enhanced production line efficiency, better capacity utilization, and cost optimization initiatives. However, this underlying improvement was partially offset by a SAR 26.9 million increase in selling and marketing expenses, driven by costs related to newly opened retail showrooms and higher transportation and logistics charges from increased sales volumes.

Quarter-on-Quarter Performance Drivers

QoQ revenue declined marginally by SAR 5.16 million (-1.348%), from SAR 383.02 million to SAR 377.85 million, primarily due to a SAR 7.0 million (5.5%) decrease in electric water heater sales driven by seasonal demand factors. Net profit fell SAR 2.18 million (-9.719%), from SAR 22.42 million to SAR 20.24 million, mainly because the previous quarter included a non-recurring SAR 4.4 million impairment reversal related to the fire at the second sanitaryware factory; excluding this item, underlying net profit actually improved by SAR 2.3 million, supported by a higher gross profit margin of 33.2% versus 31.2% in the prior quarter, reflecting continued operational efficiency gains and better production cost management.

Other Items

The external auditor issued an unmodified conclusion on Saudi Ceramic Co.'s interim financial results for the six months ended June 30, 2026, with no additional comments, reservations, or qualifications noted. Total shareholders' equity (after deducting minority equity) stood at SAR 1,545,775 thousand as of the current period, compared to SAR 1,558,012 thousand in the same period of the prior year, a decline of 0.785%. Earnings per share for the current period were SAR 0.43, down from SAR 1.34 in the same period of the prior year. No material risks related to going concern, debt default, or accumulated losses as a percentage of capital were disclosed in the announcement. The company stated that it "continues to implement its initiatives aimed at optimizing production costs, improving production and sales planning, enhancing production capacity utilization, and strengthening working capital management" and is "executing its growth strategy by expanding its showroom network across various regions of the Kingdom, broadening its presence in both domestic and international markets, increasing its market share, and exploring new growth opportunities, thereby supporting sustainable growth and maximizing long-term value for shareholders."

Original announcement:

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