Arkan Building Materials Company, a leading construction company in the UAE, said its net profit for the first nine months hit Dh81 million, up 32 per cent over Dh55 million for the same period last year.

A leading cement manufacturer in the UAE, Arkan currently provides cement and other building and construction materials for a number of major infrastructure and development projects in the capital including the Abu Dhabi Presidential Palace, Abu Dhabi International Airport, Yas Island and Western Region.

The Abu Dhabi-based company’s revenue for the first three quarters surged 20 per cent to Dh666 million from Dh532 million last year mainly driven by growth in sales and enhanced operational efficiencies.

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.

Arkan pointed out that the strong financial performance was a result of its reinvigorated approach to business development and sales and to the achievement of greater efficiencies across its building materials manufacturing entities.

Commenting on the results, chairman 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," he added.

Arkan said 2015 marked 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.

The expansion of long-term contracts, many of which are large-scale infrastructure and community developments such as these, 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.

CEO Abdellatif Sfaxi said the double-digit revenue and profit growth reflects Arkan’s strong fundamentals, operational excellence and superior building materials offering that have enabled it to weather a general trend of increased volatility and price pressure in the sector.

"It is also a reflection of our effort to set the benchmark for our industry, differentiating ourselves clearly from other market players through an expanding product portfolio, value-added services and a unique proposition that enables us to accompany our customer through the full life-cycle of their projects," he added.-TradeArabia News Service