Arabian Cement Co 1Q revenue rises 11% YoY

Arabian Cement Company (ACC) said first-quarter revenue increased by 11 per cent to EGP585m (US$76.6m) compared to EGP529m a year earlier. The advance was mainly attributed to a 13 per cent increase in volumes as prices slip over the period.

However, net profit dropped 52 per cent YoY to EGP56m, while the net profit margin was down 12 points to 10 per cent, the company in a statement.

ACC said the EBITDA stood at EGP184m,19 per cent below than EGP227m in the corresponding period of last year. Profit before tax declined by 45 per cent compared to 2014 reaching EGP86m.

Several factors impacted the results, mainly higher costs of production driven by larger transported quantities at higher cost, as well as the use of imported clinker in January and a devaluation of the Egyptian pound.  A two per cent decrease in prices was also witnessed.

Commenting on the results, CEO Jose Maria Magrina said: "We are confident that the Egyptian market still holds strong potential growth. We are optimistic that the country is on the right course for a continuation of economic growth and political stability.

"By end of May, we will have also finished our conversion to our final fuel mix, which should see increased availability and decreased costs, positioning us in the lead line for the second half of the year in terms of capacity and sales.

"However, any delays in the implementation of the announced projects would definitely have its effect on the expected growth in demand. On the other hand, prices are now returning to previous levels and are now higher than end of 2014."