Abu Dhabi, United Arab Emirates: Arkan Building Materials Co. PJSC (ADX: ARKAN) (“Arkan” or “the Group”), a leading construction and building materials company in the UAE, today announced its consolidated financial results for the three months to 31 March 2019.

Net profit for Q1 2019 was AED 12.22 million, an increase of 4.4% compared to AED 11.70 million for the same period in 2018. Profit growth was attributable to the continued reduction in direct costs across the business and income recognized from the sale of scrap assets from the old Emirates Cement Factory.

Group revenue was AED 234.99 million, compared to AED 267.82 million in Q1 2018 as a result of the highly competitive market environment across all product lines.

The Cement Division suffered a contraction in its immediate market and has resorted to selling in farther markets to compensate its sales, thus resulting in lower realized prices. Blocks and Dry Mortar witnessed increased sales by 42.7% showing continued client demand for high quality specialty products. Pipes had a tough period, reflecting the broader construction market with lower export sales than last year. 

Commenting on the results, Eng. Jamal Salem Al Dhaheri, Chairman of Arkan said: “The regional construction market continues to be extremely challenging. We are yet to see the expected improvements in the market cycle since the implementation of Abu Dhabi Government initiatives and economic stimulus packages to drive growth and foreign direct investment into the Emirate. We continue to protect our operating margins as much as possible by leveraging our strong reputation for quality across our client base, reducing input costs and driving niche product sales, especially Blocks and Dry Mortar.”

For investor relations enquiries, please contact:
Brunswick Group
Phone: +971 (0)2 234 4600 / +971 (0)4 446 6270
Email: arkan@brunswickgroup.com

About Arkan

Arkan Building Materials Co. PJSC (ADX: ARKAN), is a public joint stock company specialising in manufacturing of building and construction products in the UAE. Arkan’s vision is to build a large integrated building products business that serves the local and regional construction industries. Arkan’s portfolio companies include the Al Ain Cement Factory, Emirates Blocks Factories, ANABEEB and Arkan Dry Mortar. For further information, please visit our website: www.arkan.ae.  

© Press Release 2019

Disclaimer: The contents of this press release was provided from an external third party provider. This website is not responsible for, and does not control, such external content. This content is provided on an “as is” and “as available” basis and has not been edited in any way. Neither this website nor our affiliates guarantee the accuracy of or endorse the views or opinions expressed in this press release.

The press release is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Neither this website nor our affiliates shall be liable for any errors or inaccuracies in the content, or for any actions taken by you in reliance thereon. You expressly agree that your use of the information within this article is at your sole risk.

To the fullest extent permitted by applicable law, this website, its parent company, its subsidiaries, its affiliates and the respective shareholders, directors, officers, employees, agents, advertisers, content providers and licensors will not be liable (jointly or severally) to you for any direct, indirect, consequential, special, incidental, punitive or exemplary damages, including without limitation, lost profits, lost savings and lost revenues, whether in negligence, tort, contract or any other theory of liability, even if the parties have been advised of the possibility or could have foreseen any such damages.