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.