Emirates Steel Arkan announced growth in its revenues and profits during the first quarter of 2023.
Net profit amounted to 152.2 million dirhams, compared to 72.6 million dirhams for the same period in 2022, an increase of 110%.
Several factors contributed to achieving the upbeat performance for the first quarter of 2023, including the increase in the volume of the steel unit’s business, entering new export markets and increasing sales of high-value-added products with improved profit margins.
The revenues of the Group for the first quarter of 2023 reached 2.41 billion dirhams, compared to 2.04 billion dirhams for the same period in 2022, an increase of 18%.
Earnings before interest, tax, depreciation and amortization amounted to 320 million dirhams, an increase of 41%.
The strong performance of the steel business contributed to the EBITDA margin of 13.3%, an increase of 2% compared to 11.2% for the same period in 2022.
The total revenues of the steel unit amounted to 2.14 billion dirhams, compared to 1.81 billion dirhams for the first quarter of 2022. The profit amounted to 137.5 million dirhams, compared to a net profit of 61.1 million dirhams for the same period in 2022, an increase of 125%.
Cement and brick business revenues amounted to 211.2 million dirhams, compared to 183.2 million dirhams for the same period in 2022. The profit amounted to 10.6 million dirhams, compared to 9.3 million dirhams for the same period in 2022.
Engineer Saeed Ghumran Al Remeithi, Group CEO, said, “During the first three months of 2023, Emirates Steel Arkan continued its outstanding financial performance, as it succeeded in doubling its net profits compared to the same period last year. This exceptional performance is due to several factors, such as the Group’s entry into new markets, focusing on higher-value-added products with improved profit margins, and favourable conditions, cost and selling prices.”
