Arabian Cement Company (ACC), a leading Egypt-based company, has registered a 11 per cent growth in its revenue for the first quarter, which rose to E£585 million ($76.4 million) compared to E£529 million ($69.1 million) the same period last year.

The solid growth was registered mainly because of the 13 per cent increase in volumes, said the company in a statement.

However, the net profit dropped 52 per cent year-on-year to E£56 million ($7.3 million), while the net profit margin was down 12 points to 10 per cent, it added.

ACC said the Ebitda stood at E£184 million ($24.1 million), 19 per cent below than the comparison period of the E£227 million ($29.7 million) in the first quarter last year.

The profit before tax declined by 45 per cent compared to 2014 reaching E£86 million ($11.2 million). Net Profit dropped 52 per cent y-o-y to E£56 million ($7.3 million).

Several factors impacted the results, mainly higher costs of production driven by larger transported quantities at higher cost, followed by use of imported clinker in January and an E£ devaluation. On the revenue side, a two per cent decrease of prices was also witnessed compared to last year.

Established in 1997, ACC is a joint venture between Cementos La Union, a Spanish investor holding the majority of shares, and a group of Egyptian investors.

The factory, located in the Suez Governorate, produces 5 million tons of cement, approximately 10 per cent of Egypt’s production.

Commenting on the results, CEO Jose Maria Magrina said: "We are confident that the Egyptian market still holds strong potential growth. We are optimistic that the country is on the right course for a continuation of economic growth and political stability."

"By end of May, we will have also finished our conversion to our final fuel mix, which should see increased availability and decreased costs, positioning us in the lead line for the second half of the year in terms of capacity and sales," noted Magrina.

"However, any delays in the implementation of the announced projects would definitely have its effect on the expected growth in demand. On the other hand, prices are now returning to previous levels and are now higher than end of 2014," he added.-TradeArabia News Service