Arkan Building Materials annual profit declines 25%
Abu Dhabi-based Arkan Building Materials reported a 25 per cent drop in full-year profit as market pressure on prices also drove down revenues.
Net profit fell to Dh75.7 million compared to the previous year’s Dh101.1m because of damage from the heavy rainstorm that hit the UAE last March.
Pressure on market prices for products caused revenue to slide to Dh807.7m compared to Dh876.9m in 2015.
Arkan’s portfolio companies include Emirates Cement Factory, Emirates Blocks Factories, Anabeeb and Al Ain Cement Factory.
To cut costs, the company decided to temporarily consolidate the production and sales of cement in a single location, which will mostly be at its Al Ain Factory.
Arkan said that this would save it Dh45m over the course of this year.
"We are opening new markets at home and abroad, introducing more innovative products and offering engineering solutions, which allows us to become true partners to our clients, not just a supplier," said Jamal Salem Al Dhaheri, the chairman of Arkan. "At the same time, we have taken important and tough decisions to reorganise our operations and position the business for the future."
( courtesy of TheNational )