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RAK Ceramics 2013 net profit surges 22% to Dh272 million

RAK Ceramics has announced that its 2013 year-end profits reached Dh272 million, 22 per cent higher over its net profits of Dh224 million for 2012.

The company’s board of directors have recommended a 25 per cent cash dividend to the shareholders following strong financial results while last year the shareholders received a 20 per cent cash dividend.

The double-digit increase from the world’s largest ceramics manufacturer corresponds with a reduction in its debt over the last twelve months of 10 per cent to Dh1.325 billion and a jump in share prices to three times their value.

“Our final figures for 2013 represent one of our strongest years of performance, with our percentage profit margin being more than double of 2012’s nine per cent net profit increase,” Abdallah Massaad, chief executive officer of RAK Ceramics, said in a statement.

“This strong financial results lays the foundation for more growth, greater product line offerings and expansion into new markets. We shall not rest on our laurels but will continue with our aggressive yet sustainable approach of expanding our business in different market segments,” he added.

The profits to the owners increased from Dh223.1 million in 2012 to Dh282.4 million in 2013 marking a 27 per cent increase. RAK Ceramics’ total revenue increased by 11 per cent for the year ending 2013, up by Dh347 million to Dh3.515 billion. The company’s ceramic product ranges contributed to 81 per cent of RAK Ceramics revenue. The organisation’s Market Capital increased by Dh1.523 billion to Dh2.33 billion.

Last year RAK Ceramics achieved another landmark milestone of 50 million pieces of bathware sold since inception and this comes close on the heels of the remarkable milestone of one billion square meters of tiles sold worldwide that was unprecedented for a ceramics manufacturing company in the region.

“Market conditions are undoubtedly improving, with the positive economic climate now allowing us to reap the benefits of our continued drive towards excellence in ceramics,” said Massaad.

— abdulbasit@khaleejtimes.com