Arkan Building Materials has seen its annual profits fall by a quarter to AED75.7m (US$20.6m), according to reports in Construction Week Online.
The company, which is the UAE’s single largest cement producer by installed capacity, blamed damage related to heavy rains in March 2016 as the cause of its fall in revenues.
Better control of costs saw the firm’s gross profit margins increase to 36 per cent in 2016, while sales volumes improved in both the UAE and internationally. However, extremely competitive conditions have depressed the price of cement, hurting Arkan’s revenues.
Earlier in 2017, Arkan announced that it would consolidate cement production at its Al Ain plant to save money.
