Abu Dhabi – Mubasher: The consolidated financial results of Arkan Building Materials Company showed AED 2.1 million net profits in the first six months of 2020, down from AED 8.5 million in the corresponding period of 2019.
The company's revenues decreased to AED 387.4 million in the first half (H1) of 2020 from AED 458.9 million in H1-2019 due to the restrictions imposed to curb the coronavirus (COVID-19) pandemic.
The decline in revenues was offset by cost savings programmes to vital cover processes, including raw material prices negotiation, reduced outsourced services, reduced manpower costs, and higher efficiencies in energy utilisation.
Meanwhile, the company’s cement, dry mortar, and blocks businesses were negatively affected by the pandemic with lower sales.
The earnings per share (EPS) stood at AED 0.001 in the January-June period of 2020, versus AED 0.019 in the same period of 2019.
The chairman of Arkan, Jamal Salem Al Dhaheri, commented: "Arkan has proven its ability to manage through even the toughest market environment and still remain profitable. This was due to the strong and decisive measures taken by management to implement over AED 30 million of cost improvement initiatives."
It is noteworthy to mention that during the first quarter (Q1) of 2020, the company's net profits declined to AED 10.53 million from AED 12.21 million in the corresponding quarter of 2020.
