Abu Dhabi: Arkan Building Materials Co on Monday announced its latest financial figures reporting a net profit of Dh33.8 million during the first quarter of 2019, representing a 55 per cent year-on-year increase.
Overall group revenue for the company was down to Dh458.9 million compared to Dh503.8 million during the same period last year, which the company attributed to market price pressure as a result of slowdowns in conventional exports such as cement.
Blocks and dry mortar revenues grew in H1 2019, resulting from strong sales volumes and a successful expansion of the manufacturing unit’s product range. The company said that profits were impacted by an increased land lease tariff and the adoption of the new accounting standards with respect to leased assets, which increased costs.
“Arkan’s financial results for the first half of 2019 demonstrate the resilience of our business as we closely monitor our costs to limit the impact of increasing competition and seasonal impacts,” said Jamal Salem Al Dhaheri, chairman of Arkan, commenting on the latest financial results.
“We could achieve high levels of efficiency in most of our businesses resulting in considerable savings on energy coupled with an increased use of industrial waste confirming our continuous progress toward being a sustainable company while our innovative products continue to break ground in new local and international markets,” he added.