Qatar National Cement Company Tuesday announced a net profit of QAR113.7m for the first quarter ended March 31, up two per cent YoY.
Sales revenue fell 8.6% in 1Q11 compared to 1Q10 and gross margins increased to 44.8% in 1Q11 compared to 35.7% in corresponding period last year
The first-quarter results exceed Global Investment House’s (GIH) expectations, mainly because of better cost control measures adopted by the company whereby they were able to increase their margins to 44.8% in 1Q11 compared to 35.7% in corresponding period last year.
Sales revenue was expected to fall because of an inflow of cheaper cement from neighbouring countries. Aside from that, demand has slowed a bit which is visible from declining revenues. Prices are fixed in Qatar, therefore only volumes can cause the decline.
During the quarter, income from associates was positive compared to a loss in the corresponding period last year, GIH notes.