National Cement Company

1. Company Overview & Earnings Context

National Cement Company (NCC) reported its Q1 2026 results, showing a decline in profitability despite stable operating performance, mainly impacted by investment-related losses.

2. Financial Performance Snapshot

• Revenue: AED 69.7M (vs AED 51.6M)

• Operating profit: AED 15.7M (vs loss in prior year)

• Profit before tax: AED 76.7M (↓ vs AED 158.0M)

• Net profit: AED 75.3M (↓ ~52% YoY)

• EPS: AED 0.210 (vs 0.438)

3. Operational Highlights & Key Metrics

• Core business:

• Cement manufacturing and sales remain the primary revenue driver

• Segment performance (page 14):

• Cement segment: ~AED 69.7M revenue

• Investment segment: ~AED 64.3M income contribution

• Balance sheet (page 4):

• Total assets: AED 2.72B

• Equity: AED 2.63B (strong capital base)

• Cash & bank balances: ~AED 108M

4. Key Performance Drivers

Based on the income statement and notes (pages 3 & 14):

• Improvement in operating profit, driven by better cost control and stable cement demand

• Significant decline in net profit, primarily due to:

• Lower dividend income from investments (~AED 73.6M vs AED 150.9M)

• Fair value losses on financial assets (~AED 15.9M loss)

• Finance income declined, reducing overall earnings contribution

• Core cement operations remained stable, but investment income volatility drove overall results

5. Outlook & Forward Considerations

From disclosures (pages 6–7 & 14):

• Business remains dependent on both cement demand and investment income performance

• Exposure to market volatility through financial investments

• Continued monitoring of regional conditions and cost environment

• Core operations expected to remain relatively stable, with earnings influenced by investment returns

6. ???? Investor Takeaway

NCC delivered stable operational performance in Q1 2026, but earnings declined significantly due to lower investment income and market-related losses, highlighting its high dependence on non-operating income streams.