ADU DHABI: UAE-based Arkan Building Materials has posted revenues of Dh411 million ($111.8 million) and net profit of Dh40 million for the first half (H1) of the year, compared with Dh444 million and Dh58 million respectively for H1 2015.
The company’s operating margin was maintained at 25 per cent despite the seasonality effect. The company’s cash and cash equivalent is Dh67 million as of 30 June 2016 [Q4 2015: Dh61 million].
Arkan has submitted its application to the relevant authorities to launch a sales office in Dubai. This will help expand an already established retail offering and allow for direct-to-consumer sales. The application is set for approval in the third quarter 2016, with the impact on the bottom line expected in the fourth quarter 2016.
Jamal Salem Al Dhaheri, chairman of Arkan Building Materials, said: “I’m very pleased at the speed at which the damage that was caused by the storm has been repaired. Production at the Al Ain Plant has been restored to full capacity. Actions taken by management will compensate for the negative impact on the net profit resulting from this storm damage. We will continue to penetrate the surrounding markets within and outside UAE, and remain committed to our strategy globally.”
