Saudi Ceramic profit leaps 17% for third quarter

Saudi Ceramic is expanding its bathroom fictures production among others.

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Saudi Ceramic Company said net profit rose 17% against the same period last year, though fell by the same margin against the second quarter.

The country’s biggest supplier of tiles, porcelain and bathroom fixtures made SAR 54.2m ($14.45m) after tax between July and September, up 17.3% against the SAR 46.2m ($12.31m) posted last year. Gross and operating profits rose 19% and 15% respectively as production efficiency improved at its Riyadh facilities. The company has also opened new production lines in this time and expanded its international network of sales.

“These positive results and increases of the third quarter of 2011 compared with the same period of the last year reflect the company’s ability in sales and production as well since the new factories started the production.”

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Net profit for the first three quarters of 2011 rose 10% against last year – SAR 179.5m ($147.856m) from SAR 162.5m ($43.32m) – with gross and operating profits rising 16% and 14% respectively.

Saudi Ceramic Company has benefitted from the higher levels of construction activity in Saudi Arabia, including the hotel projects in the country’s major cities and the thousands of homes under construction across the country.

This year the company has expanded its operations. In January the company test-ran a new pipe-making facility that it is running in conjunction with a subsidiary, Ceramic Pipe Company. In September, it completed the construction of its fourth tile factory, boosting the total capcity to 52m² and adding an estimated SAR 150m ($40m) to revenue.

Earlier this month, the company said it is planning a second factory that will produce bathroom fixtures, investing SAR 120m ($32m) in the first phase out of the company’s own cash flow from the Saudi Industrial Development Fund and commercial banks. The new factory is estimated to contribute SAR 75m to revenues when at full capacity.

Shares closed up 0.38% yesterday in Riyadh.