RAK Ceramics profit surges 42% in Q3 as sales revenue up

RAK Ceramics, one of the largest ceramics lifestyle solutions providers in the world, on Wednesday reported a total revenue of Dh906.4 million during the third quarter of 2022, reflecting an increase of 32.4%.

The company also reported a net profit of Dh90.1 million during the July-September 2022 quarter, representing a growth of 42 per cent. However, nine-month net profit stood firm at Dh262.1 million.

Abdallah Massaad, group CEO, RAK Ceramics said RAK Ceramics achieved a solid performance in third quarter of 2022 supported by strong operational capabilities despite navigating through challenging macro-economic conditions.

"This quarter we strengthened our foundation, especially in terms of brand positioning, productivity, efficiency and sustainability, to further solidify our growth and build shareholder value," he said.

"Additionally, we progressed notably on various expansionary fronts, and we remain in line with our expansionary priorities set for this year. We also focused on advancing in terms of integration plan for Kludi Group and on finalising our position in our Tableware subsidiary, RAK Porcelain; we foresee the fruits of such acquisitions to be seen progressively over the upcoming quarters," he said.

Strategic highlights

RAK Ceramics realised further advancements in terms of expansionary plans and Greenfield projects. In the UAE, the company is working on enhancement and additions to its capacity for Tiles, Sanitaryware and Tableware divisions; commercial production post completion of such projects are estimated to be materialised in 2023. In Bangladesh, the company acquired land in Aug 2022 for the set-up of recently approved greenfield project.

As of September 30, 2022, the company acquired four per cent stake in RAK Porcelain, bringing RAK Ceramics ownership position up to 91 per cent following an all-cash proposal shared to minority shareholders.

In Saudi Arabia, RAK Ceramics signed a Conditional Investment Agreement with the Royal Commission of Jubail & Yanbu, which stipulates the allocation of Yanbu land to RAK Ceramics.

Additionally, RAK Ceramics executed contract for sale of land in Australia, for a consideration of A$28 million, which is equivalent to almost Dh65 million, recording a net gain of Dh18.5 million after tax for Q3 2022.

Operational review

In the UAE, revenue grew by 28.2 per cent compared to same period last year, driven by growing real estate market and solid brand positioning following refurbishment showroom projects executed in Q3 2022. E-commerce sales continue to pickup QoQ basis as the company’s online offering continues to grow and expand.

RAK Ceramics’ performance in Saudi Arabia remained strong with an increase of 15.1 per cent compared to same period last year, given its continuous focus to secure projects and to expand its retail footprint amidst optimistic market outlook for Saudi Arabia’s real estate sector.

business@khaleejtimes.com