Business · Companies · 12 hrs ago
Riyadh Cement sales rose 5% as Saudi demand fell
Riyadh Cement's black cement sales rose 5% in the third quarter of 2026, reaching about 838,000 tonnes.
The company sold more than a year earlier even as Saudi cement demand fell 3.2% over the same period.
Riyadh Cement also said its sales were up 4% from the previous quarter, while sales over the first nine months edged down 0.3%, less than the market's 2.7% drop.
Higher sales and prices lifted black cement revenue 14.9% to 124.6 million riyals; revenue from white cement rose about 10%.
The company said higher fuel costs, strong competition and lower black cement prices are putting pressure on prices and profit margins.
It expects fuel price increases to raise production costs by about 5% to 6%, and has focused on efficiency and cost control.
The company says future results will show whether growth can last, as it watches for a recovery in demand and prioritizes sustainable profits over simply selling more cement.
Riyadh Cement’s black cement sales rose about 5% in the third quarter of 2026, even as demand in Saudi Arabia’s cement market fell 3.2%.
The company sold about 838,000 tonnes of black cement in the quarter, compared with the same period a year earlier.
Riyadh Cement’s sales volumes were also up 4% from the second quarter, while its sales fell just 0.3% in the first nine months of the year.
The company attributed higher third-quarter revenue to increased sales volumes and higher average selling prices for black cement.
Chief Executive Shuaile Al Ayed said fuel costs, price competition and pressure on selling prices weighed on profitability.
- Who
- Riyadh Cement, whose chief executive is Shuaile Al Ayed.
- What
- Black cement sales rose about 5% in the third quarter of 2026 to about 838,000 tonnes, while Saudi cement-market demand fell 3.2%.
- When
- The third quarter of 2026, compared with the same period in 2025.
- Where
- Saudi Arabia.
- Why
- The company said higher sales volumes and an increase in the average selling price of black cement contributed to revenue growth.
This story does not have two clearly opposing sides.
Riyadh Cement’s sales volumes were lower than in the third quarter, which later showed a 4% increase from the second quarter.
Riyadh Cement’s black cement sales rose about 5% year on year to about 838,000 tonnes, while market demand fell 3.2%.
Riyadh Cement’s sales declined 0.3%, compared with a roughly 2.7% fall in market demand.
The company said higher fuel prices put pressure on profit margins.
- Black cement sales
- About 838,000 tonnes in the third quarter of 2026
- Year-on-year sales growth
- About 5%
- Saudi market demand
- Down 3.2% in the third quarter of 2026
- Black cement revenue
- 124.6 million riyals, up 14.9%
- Gross profit margin
- About 30.5% in the first nine months of 2026
- Fuel cost impact
- Production costs expected to rise about 5% to 6%
What people are saying
The company’s sales volumes also rose 4% compared with the second quarter of this year, while its sales decline in the first nine months of the year did not exceed 0.3%, against a market demand decline of about 2.7%, reflecting performance better than the market and an improvement in the company’s market share.
Sales growth does not necessarily represent a sufficient indicator of a sustainable increase in demand or additional market-share gains.
The company’s priority is sustainable profitability, not merely increasing volumes.