On Monday, Riyadh Cables Group, the foremost manufacturer of cables in the Middle East, recommended a higher cash dividend following a remarkable increase in profits for the full-year 2024, which surged by an impressive 57.6% year over year due to significant sales volume growth and the diversification of their product mix.
The board proposed a cash dividend of 2 Saudi riyals per share for the latter half of 2024, pending approval at the upcoming general assembly. This proposal marks an increase from the previous year's payment of 1.5 riyals per share. If approved, the total dividend for the entire year will amount to 3.5 riyals per share, a boost from the 2.5 riyals paid out the previous year. The enhancement in shareholder returns is a direct result of a robust increase in net profit for the twelve months ending December 31, 2024.
Net profit soared to 816.9 million riyals, a significant rise from 518.5 million riyals recorded the year prior. Earnings per share (EPS) experienced a commendable growth leap, climbing to 5.46 riyals from 3.46 riyals. Operational profit also demonstrated impressive growth, expanding by 49.5% to reach 968.4 million riyals. Revenue for the Saudi Arabia-listed cable manufacturer surged to 9.01 billion riyals from 7.83 billion riyals a year earlier, reflecting a notable increase of 15.1%.
This growth in revenue was driven primarily by heightened sales volumes across various products, including cables, electrical wires, telecommunications cables, and electrical transmitters. Riyadh Cables Group operates facilities in Saudi Arabia, the United Arab Emirates, and Iraq, focusing on delivering a wide array of products.
Its offerings include wires, low, medium, high, and extra high voltage cables, overhead line conductors, instrumentation and control cables, renewable energy cables, as well as fiber optic and telephone cables. Beyond manufacturing, the company enriches its operations with sales, electrical contracting, and maintenance activities, enabling it to maintain a robust position in the ever-evolving cable manufacturing industry..