Arabian Cement’s net profit fell by 52% despite 11% revenue increase
Egypt: Arabian Cement reported an 11% year-on-year increase in revenues to US$76.7m during the first quarter of 2015. This, however, did not lessen the significant drop in the company's net profits, which plummeted by 52% to US$7.34m. Earnings before interest, taxes, depreciation and amortisation (EBITDA) fell by 19% year-on-year to US$24.1m. Profit before tax declined by 45% to US$11.3m.
The company said that higher transportation costs led to higher costs of production and impacted the quarterly results. The company added that the devaluation of the Egyptian Pound against the US Dollar had influenced the company's foreign losses, which surged to US$4.06m in the first quarter of 2015, compared to a US$301,422 loss in the same period of 2014.
Arabian Cement said that, despite it being a tough quarter, it had succeeded in operating at above 90% clinker capacity and also increased its sales volume. Its market share also grew by 1%, rising from 7% in the first quarter of 2014 to 8% in 2015.