UAE's Arkan posts 32% rise in 9M 2015 net profit
The Abu Dhabi-based firm recorded revenues of $181m (AED666m) in 2015, compared with $144m (AED532m) for the same period in 2014
UAE's Arkan Building Materials recorded a 20% increase in revenues for the first three quarters of 2015.
The Abu Dhabi-based firm recorded revenues ofn $181m (AED666m) for the period up to the 30 September 2015, as compared to the $144m (AED532m) for the same period in 2014.
Profits for the first three quarters of 2015 increased by 32% from $15m (AED55m) in 2014 to $22m (AED81m) in 2015.
The company’s strong financial performance is attributed to a reinvigorated approach to business development and sales and to the achievement of greater efficiencies across its building materials manufacturing entities.
Over the past year, the owner of the only integrated cement plants in Abu Dhabi had successfully implemented a number of initiatives aimed at diversifying its customer base and widening cross-selling opportunities.
Commenting on the financial results, Arkan chairman Eng Jamal Salem Al Dhaheri said, “Arkan’s financial and operational achievements over the year to date validate its sound strategy, as well as its management’s commitment to quality execution. As we look ahead, our goal is to remain at the forefront of the industry by continuing to work in close partnership with our customers and ensuring our products and services are aligned with their evolving needs.
"Our unique offering of diversified products and the strong reputation we have built in the marketplace positions us well for stable and sustainable growth well into the future as we continue to create value for our shareholders.”
The expansion of long-term contracts, many of which are large-scale infrastructure and community developments, have contributed significantly to the company’s sales growth over the past nine months.
Sales volume growth has also had a knock-on effect of increased operational efficiency across Arkan’s plants, driving greater capacity utilisation and leading to a reduction in unit production costs, which also helped boost the company’s bottom line.
2015 marks the first full year of operation for the company’s Al Ain cement factory, one of the UAE’s largest, which came into operation in late 2014.
Arkan is also exploiting synergies across its product lines, including cement and clinker, blocks and pavers, dry mortars, GRP and PVC pipes and manholes, to further streamline its product and service offerings and to ensure it retains its pole position as the only integrated building materials manufacturer in Abu Dhabi.