Ras Al Khaimah: RAK Ceramics has defied the global economic slowdown and construction slump with an impressive 20.2 per cent increase in net profit for 2009.
The company has announced a net profit of Dh261.9 million for 2009, a 20.2 per cent increase from Dh217.9 million in 2008. The company also saw its sales surging to Dh3.77 billion in 2009 from Dh3.23 billion in 2008.
The general assembly meeting of RAK Ceramics held at Al Hamra Convention Centre approved a 10 per cent bonus share issue to the shareholders. The meeting was attended by Shaikh Mohammad Bin Saud Al Qasimi, member of the RAK Ceramics board of directors.
Dr Khater Massaad, CEO of RAK Ceramics, said that 2009 was a milestone year for the company despite the prevailing global economic conditions as RAK Ceramics for the first time crossed annual revenue of $1 billion (Dh3.67 billion).
Initiatives
"The profit growth achieved by RAK Ceramics comes against the backdrop of the strategic initiatives implemented by the company from 2004-2009, during which it completed an ambitious expansion plan which allowed the company to position itself among the largest global ceramic manufacturers.
"The company has also made several investments in forward and backward integration of its value chain by strategically investing in joint ventures and projects and successfully spinning off cost centres into profit centres.
"Last year, RAK Ceramics was able to leverage its export relationships in over 135 countries in its core ceramic markets and continued to foster growth of investments made in related businesses," Massaad said.
He added that in addition to improving its overall profitability, RAK Ceramics has been able to reduce its overall loans by Dh354 million.
The company clocked global sales of 100.7 million square metres of ceramic tiles in 2009, up from 92.3 million square metres in 2008 and global sanitary ware sales climbed from 2.8 million pieces in 2008 to 3.5 million in 2009.
