Emirates Steel Arkan strives to play a key role in Abu Dhabi Government diversification drive to deliver the 2030 vision.
Arkan posts 26 per cent increase in 2015 net profit
Increase in net profit driven by sales growth, greater operational efficiencies, product exports and emergence of new business units
14 February 2016, Abu Dhabi, UAE – Arkan Building Materials Co. PJSC (ADX: ARKAN) (“Arkan” or “the Group”), a leading construction and building materials company in the UAE, today announced a strong increase in both revenues and net profit in its preliminary unaudited results for the full year 2015.
Arkan reported revenues of AED 876.9 million, an increase of 17% from AED 751.8 million reported in 2014 as a result of its focused local market penetration and market share driven strategy. Arkan has concurrently increased its export sales, primarily to GCC, Africa and Asian markets.
During the course of the year, the Company has supplied most of its products to all iconic infrastructure and community projects, such as the new Presidential Palace in Abu Dhabi, the new terminal at Abu Dhabi Airport and Emarati Housing projects in Yas Island.
The Company reported a net profit of AED 101.1 million for 2015, an increase of 26% compared to AED 80.0 million in 2014. This was due to increased production efficiencies across the businesses coupled with higher sales volumes, renegotiated supply contracts and loan agreements. Overall, the net profit margin was 11.3%, an improvement of 7.6% compared to 2014.
Commenting on the Company’s financial results, Arkan Chairman Eng. Jamal Salem Al Dhaheri said, “Arkan has performed well in 2015; with strong advances in both revenues and profits while maintaining a lean structure. As we look ahead to the coming year, we will continue to capitalise on our position as a market leader in Abu Dhabi, and expand our markets both across the UAE and internationally. We are confident that our sustainable strategy will allow us to continue growing despite more challenging market headwinds.”
Arkan CEO Mr. Abdellatif Sfaxi added, “We have made significant operational progress in 2015 by increasing our market share and sales volumes through capitalising on our integrated products and services offering while ensuring increased operational efficiencies. As a result, we can now further compete on the international market.
“Despite increased pricing pressure as a result of an oversupplied market, we continue to develop our businesses to remain at the forefront of our industry by exploring new markets, expanding our product portfolio and enhancing our value proposition. We have made a good start to 2016 and are confident we can continue to grow over the course of the year.”
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Arkan Building Materials Co. PJSC (ADX: ARKAN), is a public joint stock company specialising in manufacturing of building and construction products in the UAE. Established in 2005, Arkan is 51 percent owned by General Holding Corporation (SENAAT), an entity wholly owned by the Government of Abu Dhabi to promote sustainable industrial activity in Abu Dhabi, with the remaining 49 percent of shares listed on the Abu Dhabi Securities Market (ADX).
Arkan’s vision is to build a large integrated building products business that serves the local and regional construction industries. Arkan’s portfolio companies include Al Ain Cement Factory; the largest cement manufacturer in the UAE with a capacity of 3.1 million tons of clinker per year and 4.5 million tons of cement, Emirates Cement Factory; Emirates Blocks Factories, producer of high quality concrete blocks with locations in Al Mafraq and Al Ain; and ANABEEB, a leading manufacturer of pipes and structural manholes (GRP & PVC) and bags. The company is also commissioning Arkan Dry Mortar, a high-capacity dry mortar plant located in Al Mafraq, which will produce a wide range of dry mix products. Additionally, Arkan actively partakes in building materials investments across the UAE, with a focus on growth opportunities in Abu Dhabi.