Revenue increased by 1% YoY, roughly in line with our expectation
Saudi Ceramic has reported a revenue of SAR 383.4mn for 4Q22, which was roughly in line with our estimates. The revenue grew 1% YoY and 5% QoQ. The increase in revenue is likely due to increased sales of ceramic tiles and sanitary ware.
Net profit declined by 13% YoY, below our expectation
The company reported net profit of SAR 41.9mn in 4Q22, compared to our expectation of SAR 50.8mn. Net profit was down by 13% YoY and 2% QoQ. The decline in the net profit is mainly due to slight decrease in revenue along with rise in cost of production inputs, which affected the profit margins as well.
Placing Saudi Ceramic Under Review
We are putting Saudi Ceramic Under Review due to consistent deviation from our estimates and as the current market price has also come down.