UAE's Arkan reports 12.7% growth in H1 2017 revenues
Arkan ended H1 2017 with $125.2m in revenues, a 12.7% increase compared to figures from the same period last year, which stood at $111.9m
UAE-headquartered company, Arkan Building Materials, has released its financial results for the first half of 2017.
In a statement, the company said that it ended H1 2017 with $125.2m (AED460m) in revenues, a 12.7% increase compared to figures from the same period last year, which stood at $111.9m (AED411m).
Arkan attributed the revenue growth to a rise in the sales volumes of cement, mortar, and concrete products, as its dry mortar plant – launched in May 2016 – reaches maximum available capacity utilisation.
The company, however, saw a dip in its net profit. It reported closing the period ending 30 June, 2017, with $6.8m (AED25m), down the last year’s $10.9m (AED40m).
According to Arkan, its financial performance during the first half of the year reflects “continuous improvements in operation efficiencies and costs optimisation, which partly absorbed the increase in gas and electricity tariff impact of $9.5m (AED35m) for the period and a notable decrease in selling prices” over all its range of products.
Arkan pointed out that the decrease in prices was driven by “overcapacity in the local market”.
Eng Jamal Salem Al Dhaheri, chairman of Arkan, commented: “Our ability to quickly adapt to market changes while continuing to drive operational improvements led to us being profitable despite the significant increase in utility cost.
“We are seeing some recovery in our main markets and signs of prices starting to rise. We are well-positioned to increase profits across our operations during the second half of the year and into 2018.”