Gross profit at Qatar National Cement Company rose by nearly a quarter last year against 2009 as a steep fall in sales cost compensated for a 28% fall in revenue.
The country’s biggest manufacturer of the building product saw pre-tax gains leap from QR421.6m to QR509.5m between the two years, according to its latest financial statement.
The cost of sales fell by almost half from QR1.09bn to QR580.5m to make up for the slide in revenue from QR1.5bn to QR1.09bn. A fall in finance charges and a smaller loss from available-for-sale assets saw net profits rise almost 12% from QR417m in 2009 to QR466.9m.
Despite a decline in the value of its non-current assets – which includes its property, plant and equipment and investment in property and securities – the company’s level of inventories rose 48% against the previous year, from QR296.8m to QR439.5m.