RAK Ceramics' revenue surges to $196m in Q2
RAS AL KHAIMAH, August 2, 2018
UAE-based RAK Ceramics, one of the largest ceramics’ brands in the world, has reported a steady year-on-year growth with its total revenues stable at Dh719.2 million ($196 million) and core revenues growing by 2.6 per cent to hit Dh678.4 million ($185 million).
Announcing its financial results for the second quarter ended June 30, RAk Ceramics said its total revenues decreased by 0.3 per cent year-on-year due to a decline in non-core revenues by 31.9 per cent, thus reflecting the complete discontinuation of the rough grading business in line with the company’s Value Creation Plan.
Total gross margin increased by +110bps to an all-time high of 34.4 per cent and core gross margins increased by +50bps to an all-time high of 34.7 per cent compared to Q2 2017, despite an increase in raw material costs and energy prices, said the company in a statement.
RAK Ceramics continued to invest in the upgrading of machines and the installation of co-gen and heat recovery systems to reduce the consumption of gas and power.
Reported net profit for the quarter was Dh55.1 million compared to Dh113.2 million in Q2 2017, however net profit in Q2 2017 included Dh34.8 million of net extraordinary gain from the sale of RAK Warehouse.
Net profit was also impacted by an increase in energy costs, foreign exchange losses, general and distribution expenses and investments in Saudi Arabian entities, brand building expenses in India and in the US for the tableware business.
The company stays committed to its Value Creation Plan, and continued improvement in operational efficiencies has offset the increase in costs and contributed to gross margins.
RAK Ceramics’ core revenue grew by 2.6 per cent year on year, led by strong sales in the UAE and India, as well as strong performance by the tableware business driven by growth in Europe and the US markets.
Tile and sanitaryware revenues in the United Arab Emirates, Saudi Arabia, India and Europe increased by 2.7 per cent, 17.2 per cent, 2.2 per cent and 6 per cent respectively year on year.-TradeArabia News Service
