Arkan 2016 revenue slips to $220m
ABU DHABI, 12 days ago
Arkan Building Materials, a leading construction and building materials company in the UAE, has posted revenues of Dh807.7 million ($220 million) for 2016, compared to Dh876.9 million in 2015.
Jamal Salem Al Dhaheri, chairman of Arkan, said: “We continue to strategically drive the business through this harsh current market cycle, offering more products in more places than ever before.”
“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. This approach sets our business apart and, over time, will allow for sustainable client relationships and consequently improved operating margins. At the same time, we have taken important and tough decisions to reorganise our operations and position the business for the future,” he added.
Arkan has decided to temporarily consolidate the production and sales of cement at its Al Ain Cement Factory, one of the most efficient plants in the UAE. This is expected to generate savings in excess of Dh45 million over the course of 2017, a statement said.
For the 2016 financial year, the group achieved a net profit of Dh75.7 million, compared to Dh101.1 million in 2015.This was mainly due to an exceptional loss related to damage caused by the heavy rainstorm that occurred in March 2016, the statement said.
Cost efficiencies from better procurement of raw materials, use of recycled materials and renegotiation of transportation contracts outweighed the reduction in profit from price decrease in 2016 compared to 2015 estimated at Dh18 million, resulting in gross profit margins increasing by nine per cent to reach 36 per cent. Earnings per share for 2016 were 4 fils compared to 5.8 fils in 2015. – TradeArabia News Service