Emsteel Building Materials Company recorded a net profit of AED 91.62 million in January – September 2024 compared to AED 387.6 million in the same period last year, a decrease of 76%.

The company achieved revenues of AED 5.87 billion in the first nine months of 2024 compared to AED 6.48 billion in the corresponding period last year, a decrease of 9%.

The company incurred losses in the third quarter of AED 82.6 million compared to profits of AED 107.1 million in the same period in 2023.

Emsteel announced in a statement that the results showed comprehensive flexibility in adapting to various aspects of the group’s business, which contributed to the stability of the steel unit (Emirates Steel) as well as the improvement in the profitability of the building materials business unit (Emirates Cement).

In the first nine months of 2024, Emsteel maintained the same steel production rates as in the same period in 2023, with total group revenues of AED 5.9 billion, down 9% from AED 6.5 billion recorded in the first nine months of 2023. This decline in revenues is attributed to the impact of several factors and market shifts, including fluctuations in global steel prices, increased competition, and evolving demand patterns affected by the prevailing economic instability in key markets.

Emsteel’s profit margins were affected by the influx of competitively priced Chinese steel products across the GCC and the group’s main export destinations such as Europe and the United States.

The company’s 9-month EBITDA profit was AED 645 million, achieving an EBITDA margin of 11%, compared to 13.6% in 2023. The group’s net profit before tax was AED 101 million.

Emirates Steel’s revenues amounted to AED 5.34 billion in the first nine months of the year, achieving a profit before tax of AED 20 million. Emirates Steel’s performance was affected by the difficult conditions in global markets, as well as due to the allocation of AED 83 million to deal with a legal case that has not yet been finalized.

The Group’s Emirates Cement business unit generated revenues of AED 537 million in the first nine months of 2024, recording a pre-tax profit of AED 81 million. Emirates Cement’s net profit margin increased to 15%, compared to approximately 14% in the first nine months of 2023.

The Group maintained a strong cash position of AED 623 million at the end of the third quarter of 2024, compared to AED 426 million on December 31, 2023.