Arkan Building Materials Co reports 7% increase in Q1 2021 revenue – MEP MiddleEast

Arkan Building Materials Co reports 7% increase in Q1 2021 revenue – MEP MiddleEast

ADX-listed Arkan Building Materials Co PJSC, a leading construction and building materials company in the UAE, has reported a 7% YoY increase in group revenue to $60.85mn (AED223.53mn).

A significant increase in sales of clinker to export markets offset lower cement sales volumes and reduced average selling prices given the more challenging local construction market.

Revenues from blocks and dry mortar were stable year on year and profit from GRP Pipes increased due to the segment’s ability to achieve better margins.

The Group’s net profit for Q1 2021 was $329,400 (AED1.21mn) compared to $2.86mn (AED10.53mn) in Q1 2020, which was a period prior to the onset of the COVID-19 pandemic.

The reduction in profit in the reported period was due to delayed construction projects, lower selling prices as well as an increase in raw material prices.

Despite the challenging market backdrop, GRP Pipes and Bags subsidiaries saw a notable increase in profit, as operational improvements helped generate better margins.

Arkan’s leadership continues to implement a series of cost saving initiatives to adapt to the new market dynamics and improve the company’s profitability. The cost rationalisation programme, which was implemented in Q4 2020 led to $1.9mn (AED7mn) of cost savings in the first three months