Abu Dhabi: RAK Ceramics, an international consumer ceramics company, on Sunday reported a net profit of Dh310.3 million for the 2015 financial year, marking a 10 per cent increase from the Dh281.7 million reported in 2014.
The company said in a statement the increase was primarily driven by the delivery of the value-creation plan and led by enhancements in core businesses and a successful turnaround of non-core business activities.
Revenues fell marginally, however, to Dh3.08 billion in 2015 — down from Dh3.1 billion in 2014.
The results put net profit for the fourth quarter of 2015 alone at Dh81.9 million, an increase from the Dh74.4 million reported in the same quarter of 2014.
The board of directors approved a cash dividend of 30 per cent pay out to shareholders, and a stock dividend of 5 per cent.
“We are aware of the economic and geopolitical factors that will continue to challenge our business in 2016 and may impact our performance, but we are confident that we have the right mechanisms and measures in place to mitigate those risks,” Abdullah Massaad, chief executive officer of RAK Ceramics Group, said in a statement.
In 2015, the company’s capital expenditure reached Dh305 million — up 85 per cent from 2014. The investment was primarily on expanding core businesses, enhancing technology, and modernising equipment.
Planned global expansion of tiles capacities in Bangladesh and sanitaryware capacity in the UAE are expected to take place in the first quarter of 2016.
RAK Ceramics said it plans to focus on turning around its operations in India in 2016, sell RAK China, and restart operations in Iran.
Last year, the company acquired 100 per cent of its subsidiaries in Iran and India, and began the process of acquiring its European subsidiaries.
The company will seek to leverage these acquisitions in 2016, and will continue to look for opportunities to invest, it said.