Yamama Cement posted its preliminary 4Q and FY2013 results. As per usual, the absence of a published revenue figure makes those results difficult to interpret, said NBK Capital.
"The FY2013 net profit came in at SAR 870 million, up 2.3% YoY, 1% below our estimate of SAR 879 million and in line with the Bloomberg consensus of SAR 867 million," NBK Capital said, "This implies a net profit for 4Q2013 of SAR 178 million, slightly below our forecast of SAR 186 million."
According to NBK Capital, the company published a 4Q2013 gross profit (post depreciation) of SAR 165 million, down 22.5% YoY.
Assuming quarterly depreciation was in line with previous quarters, i.e. SAR 47 million, this would result in a gross profit pre-depreciation of SAR 212 million, 20% below its estimate of SAR 263 million (no consensus available). SG&A of SAR 13 million was in line with its estimate, resulting in a 4Q2013 EBITDA of SAR 199 million, 20% below its estimate of SAR 249 million.
"Overall, these results seem to be slightly below our anticipations at the operating level, discounting for the subsidies issue. We will await publication of the full results before updating our model. Any changes are likely to be minimal at the net level, but more substantial at the EBITDA level due to the issue of the classification of subsidies for imported clinker; however, this has limited (if any) effect on our fair value. Remains at "Hold"," NBK Capital concluded.