Abu Dhabi – Mubasher: Arkan Building Materials Co, listed on the Abu Dhabi Securities Exchange (ADX), has reported a 4.4% year-on-year increase in net profits for the first quarter of 2019.

Net profit reached AED 12.22 million in the three-month period ended 31 March, versus AED 11.70 million in Q1-18, Arkan said in a statement.

The company attributed the increase in Q1-19 profits to a decline in direct costs across the business and income realised from the sale of scrap assets from the old Emirates Cement Factory, according to the statement.

Revenue totalled AED 234.99 million in Q1-19, compared to AED 267.82 million in the year-ago period, the UAE’s leading construction and building materials company added.

The company’s Cement Division seen a reduction in its immediate market and has turned to selling in farther markets to compensate its sales that resulted in lower realised prices.

Blocks and Dry Mortar experienced a jump in sales by 42.7%, signalling continued client demand for high-quality specialty products.

Jamal Salem Al Dhaheri, chairman of Arkan, said: “The regional construction market continues to be extremely challenging. We are yet to see the expected improvements in the market cycle since the implementation of Abu Dhabi Government initiatives and economic stimulus packages to drive growth and foreign direct investment into the Emirate.”

“We continue to protect our operating margins as much as possible by leveraging our strong reputation for quality across our client base, reducing input costs and driving niche product sales, especially Blocks and Dry Mortar,” Al Dhaheri added.

In 2018, Arkan logged a net profit of AED 52.4 million, up 74% year-on-year from AED 30.2 million in 2017.