RAK Ceramics, a global hi-tech manufacturer of lifestyle ceramics solutions, has reported a 43 per cent increase in net profit for the third quarter ended September 30, compared to the same period last year.

RAK Ceramics has delivered a net profit of Dh82.1 million ($22.3 million) this year, in comparison to Dh57.4 million ($15.6 million) during the same months in 2014, said a statement from the company.

The performance was largely driven by an increased level of activity across RAK Ceramics’ core businesses in core markets and margin improvements in tiles and non-core businesses, it said.

The adjusted net profit, excluding the impact of hyperinflation from Sudan and Iran increased by 10.2 per cent, reaching Dh90.7 million ($24.6 million) in Q3 2014, compared to Dh82.3 million ($22.4 million) in the third quarter of 2014, it added

Overall net profit for Q3 2015 increased by 43 per cent at Dh82.1 million ($22.3 million), in comparison to Dh57.4 million ($15.63 million) in Q3 2014, supported by controlled operating costs and procurement savings, which reached Dh15.2 million ($4.14 million) in Q3 2015, allowing the company therefore, to increase blended gross margins to 30.7 per cent from 26.9 per cent in Q3 2014, said the statement.

The results exceeded analysts’ estimates and came in line with management expectations despite an ongoing dampening economic environment, a weaker Euro, higher natural gas prices and falling oil prices. This reflects the success of RAK Ceramics’ refocused strategy and the continued execution of the ‘Value Creation Plan’ to invest in and expand core businesses and divest non-core businesses, it added.

Abdallah Massaad, chief executive officer of RAK Ceramics, said: “The company has delivered a strong performance in Q3 2015, demonstrating the core strength of our business.”

“Over the past year, we focused on core business and growth opportunities in core markets and succeeded in delivering results. We invested, we grew, and we are on track to satisfy all elements of our value creation strategy,” he said.

“Additionally, the company made significant efforts this year to expand in new global markets. The company opened a representative office in Singapore during the year to expand its presence in Asian markets, which has already borne fruit, and is looking to expand its presence in the Americas towards the end of 2016 as the company leverages its international capabilities,” he added. – TradeArabia News Service