RAK Ceramics, a global manufacturer of ceramics solutions, has posted a net profit of Dh65.9 million ($17.9 million) for the first quarter (Q1) of the year against Dh59.5 million for Q1 2015, ($16.2 million) marking an increase of 10.8 per cent.

The company recorded a relatively unchanged overall revenue of Dh735.7 million (Q1 2015: Dh744.1 million) for the quarter.

Growth was led by a 3.3 per cent increase in the sale of tiles to Dh496 million and a 0.5 per cent increase in sanitary ware sales to Dh111.5 million supported by restructuring efforts in ‘core markets’’ and the continued improvement of ‘non core businesses’.

Overall core revenue increased by 2.9 per cent to Dh644.7 million (Q1 2015: Dh626.4 million), while non-core revenue reduced to Dh91 million in Q1 2016 partly due to the sale of RAK Logistics (Q1 2015: Dh117.7 million).

Consolidated Ebitda (Earnings before interest, taxes, depreciation and amortisation) rose by 6.7 per cent to Dh138.3 million (Q1 2015: Dh129.6 million) and Ebitda margin increased to 18.8 per cent (Q1 2015: 17.4 per cent) as a result of higher gross margins and reduced general, selling and administrative expenses.

Despite a slower growing economy across Europe, RAK Ceramics’ sales to European countries rose by 7.5 per cent year on year.

Abdallah Massaad, RAK Ceramics’ Group chief executive officer, said: “RAK Ceramics has maintained its prudent approach of focusing on key growth markets during the first quarter of this year with capacity expansions, senior appointments and further consolidation of key assets in core markets.”

“While global financial conditions have presented the business with a challenging economic environment, we are confident that we will see a solid performance in the next three quarters, thanks to our ongoing efforts to strengthen the business, reduce losses and increase margins.

“As we continue delivering on our Value Creation Plan, we intend to retain our position in key markets, keep an eye on opportunities for further expansions and retain the highest calibre of manufacturing talent available in the market,” he added. – TradeArabia News Service