GoDubai
  
  
  
  
Citylife > Press Release
  Home Contact us Add to Favourites
Most Recent Postings
More Press Releses
Featured Sections

Event Finder
A daily roundup of exhibitions, promotions and other events in Dubai and the rest of the Emirates.
Submit an Event
Latest Dubai Press Releases >>

 
  Share
  • Total revenue decreased by 6.8% to AED 1.29 billion compared to H1 2018. However, total revenue increased by 7.6% quarter on quarter. 
  • Sanitaryware revenue increased by 6.7% year on year driven by sales in Saudi Arabia, India and Europe.
  • Tableware revenue increased by 3.8% driven by growth in US and GCC markets.  Total gross profit margin increased by 100bps year on year to 34.2%, driven by an increase in tiles gross profit margins by 130bps to 29.9%. 
  • EBITDA increased by 8% year on year to AED 239.8 million.  
  • Reported net profit decreased by 8.5% year on year to AED 110.3 million, at a margin of 8.6%. However, net profit increased by 98.8% quarter on quarter to AED 73.4 million owing to the reversal of a receivables provision amounting to AED [22.1mn]. 
 
Ras Al Khaimah, United Arab Emirates, 7th August 2019
RAK Ceramics PJSC (Ticker: RAKCEC: Abu Dhabi), one of the largest ceramics' brands in the world, announced its financial results for the six months ended 30th June 2019.
 
Robust profitability 
 
In the first half of 2019, RAK Ceramics has continued to implement initiatives that have made the business more agile, operationally efficient and profitable, despite increasing energy costs. 
Gross profit margins increased by 100bps year on year to 34.2%. 
Tiles margins increased by 130bps year on year to 29.9% driven by continued improvements in operations, while sanitaryware margins remained stable at 38.4%. 
Tableware margins decreased by 3.3% year on year to 54.8%, due to changes in the product mix. 
 
Performance in line with expectations
 
Tiles revenues were lower year on year per management expectations, owing to difficult MENA market conditions and demand seasonality given the Eid period. 
The sanitaryware and tableware businesses continued to perform well, with revenues increasing by 6.7% and 3.8% respectively year on year. 
Reported net profit grew by 33.1% year on year in Q2 2019 to AED 73.4 million. This was driven by improved gross margins and the reversal of an AED 22.1mn receivable provision created in 2017, which has now been received.
 
Saudi Arabia expansion update
 
RAK Ceramics' continues to evaluate strategic options for adding a secondary manufacturing facility in Saudi Arabia, which will enable it to produce at low cost and supply the growing local market as well as key export markets in Europe. 
India turnaround on track 
 
The greenfield production facility in Morbi, Gujarat began commercial production of RAK Ceramic's mega slab tiles in early 2019 and has reached 70% production utilisation. 
 
A second Morbi plant producing ceramic tiles has achieved a production utilisation of 92%. The contribution of India's  exports increased from 3.5% of total revenue in H1 2018, to 15.5% of total revenue in H1 2019. 
 
Abdallah Massaad, Group CEO, RAK Ceramics said: “We have seen an improvement in our gross margins during the period due to continued investment in operational efficiencies. Despite high energy costs, we remain focused on running an efficient and profitable business.   
 
Looking ahead to the remainder of 2019, we will continue to focus on mitigating energy costs and improving profitability in Europe and Saudi Arabia. Our business in India is on the right track and we hope to establish it as a hub moving forward. 
 
RAK Ceramics is also always on the lookout for opportunistic acquisitions, as we optimise production and protect our growth in India, Bangladesh and the UAE.”



Posted by : GoDubai Editorial Team
Viewed 7198 times
Posted on : Wednesday, August 7, 2019  
Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of GoDubai.com.
Previous Story : Hormann announces speed rolling shutter DD S6
Next Story : Empower connected its service to 43 new buildings with a cooling capacity of more than 56,000 Refrig...
Email this article Print this article

Share this article with your friends and followers
NewsVine

Comments

Back to Top  
Most Viewed Press Release posted in the last 7 days
Foreo Set to Break the Beauty Stratosphere According to Experts
Mother's Day Gift Guide 2020
Dina Akesbi joins Clio Beauty on the Professional Beauty GCC Mainstage on 18th Feb!
St Valentine's Day'
6 Trends That Will Dominate Beauty in 2020 According to Foreo
Korea's Number One Beauty Brand Innisfree All Set to Celebrate the Grand Opening...
Jaguar Land Rover on Tour Sheikh Hamdan's Falcons Dominate Hurr Category in Fakh...
V-Motif Western
Costa Coffee Introduces 4u Healthy Food Range Across All UAE Stores in Partnersh...
Rado True Thinline Les CouleursTM Le Corbusier'
Corum Admiral's Cup Legend 47 Worldtimer'
5 Ways To Bring Spring's Top Trends Into Your Wardrobe
HONOR Launches the Iconic Glass Designed HONOR 20 in the UAE
City of Gold Rewarded 200 Jewellery Shoppers With 4 Million Worth of Dubai City ...
Made in Italy: Top Picks from the Latest Deborah Milano Make-Up Range
Introducing Zeitun Premium Face Care Collection
Samsung's New Galaxy S20 Now Available for Pre-Order in the UAE
SPORTMAX 50th Anniversary Capsule Collection
Marks & Spencer, Britain's Best Loved Denim
Dubai Customs Graduates 1st Batch of “Dubai Customs Leaders” Program
Team Abu Dhabi Riders Grab Double Triumph On Dramatic Race Day in Kuwait
Italian Food Exports to the UAE Increases by 11%, Reports ITA Ahead of Italian P...
Aston Martin DBX Makes First Public Appearance in UAE
Union Coop to Sponsor the FAZZA Championships for People of Determination 2020
AS World Group Global Roadshow Promotes Expo 2020 Dubai at 33rd African Union Su...
Arla Foods Introduces New Baby&me Organic Products to Saudi Arabian Market
Spring is in the Air at West Elm
Now at IKEA Dubai you can buy with your time. IKEA's latest innovation converts ...
How to Beat Pigmentation with DERMAdoctor
Create the Ultimate Home Cinema Room With LG
Artificial Intelligence Seen to Play a Significant Role in Driving Success Rate ...
Parmigiano Reggiano Consortium Participates in Gulfood
Buyers Rush for Majid Al Futtaim's First ‘Elan' Townhouses at Tilal Al Ghaf
The Award-winning #burjumanfoodart Festival is Back by Popular Demand!
Heart-Winning Accessories from 2XL Furniture & Home Décor
Hyundai Launches the All New I30 N in South Africa
Rate Hawk is Live with Global Innovations Flagship Product TassPro and Itinerary
Karl Lagerfeld Valentines Special
Achieve Gorgeous and Radiant Skin in Only 90 Seconds
The Bentley Mulliner Bacalar – the Future of Coachbuilding
His Highness Sheikh Hamdan Bin Rashid Al Maktoum Opens Gulfood 2020
Cisco Launches a Comprehensive Security Architecture for Industrial IoT
Abu Dhabi University Celebrates UAE Innovation Month
UAE Community Takes Millions of Steps in Solidarity With Children Who Walk Long ...
“Planet Positive” is Tetra Pak's New Way of Doing Business
Hala and Etisalat Team Up to Strengthen Dubai Taxi Captains' Bond With Their Fam...
Sorbonne University Abu Dhabi (SUAD) to Host Open Day for Prospective Students
Tsitsipas Ready to Launch Another Bid for Dubai Duty Free Tennis Championships
KIZAD to Participate in GulFood 2020 to Showcase Competitive Advantage
Dubai Chamber Honours Top-performing Trading Companies