Shares in Saudi Ceramic Company rose early on Sunday as it reported a narrower net loss for the first quarter (Q1) of 2019.
The company reported a net loss after zakat and tax of 25.05 million Saudi riyals ($6.69 million) for Q1 2019, compared to a net loss of 49.95 million riyals in Q1 2018, slightly missing EFG Hermes’ estimate of a 23 million riyal net loss.
Q1 2019 revenue amounted to 309.6 million riyals, compared to 256.5 million riyals in Q1 2018, 3 percent above EFG Hermes’ estimate.
“Although the full financials are not yet available, we believe the recovery in revenue Y-o-Y (year-on-year) was driven by a mix of improved product prices and better sales volume,” Sameer Kattiparambil, an analyst at EFG Hermes, told Zawya by email.
The company’s shares were trading 2.83 percent higher at 19.6 riyals by 11:34 GST, and have added 0.82 percent since the start of 2019.
Kattiparambil said that although the company recorded a net loss, “we believe its operational recovery supports our view that it is a turnaround story,” adding that EFG has maintained its “Buy” on the company’s stock.
(Reporting by Gerard Aoun; Editing by Michael Fahy)
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