Business | General

RAK Ceramics reports Dh54.3m first quarter net profit

First quarter revenue reaches Dh 805.9 million

  • By Sarah Algethami, Staff Reporter
  • Published: 17:23 May 12, 2013
  • Gulf News

  • Image Credit: Gulf News Archives
  • RAK Ceramics stall at Big 5 Exhibition in Dubai. It produces 117 million square metres of ceramic tiles, 4.5 million pieces of bath ware and 20 million pieces of tableware.

Dubai: RAK Ceramics, one of the world’s leading manufacturers of ceramic tiles, reported on Sunday a nine per cent rise in net profit to 
Dh54.3 million in the first quarter from Dh49.9 million during the same time last year.

“We are controlling operating expenses and shifting our focus to markets that give us better profitability,” said Abdullah Massaad, CEO of RAK Ceramics.

RAK Ceramics is a manufacturer of ceramic tiles, tableware and bath ware, supplying more than 160 countries, across the Middle East, Africa, Asia and Europe. It has worked on several projects, including hotels and shopping malls, among others.

The ceramics manufacturer is focusing on the local and GCC markets. It is supplying its products to a number of construction and development projects across the UAE and GCC, according to Massaad. Additionally, the lower freight expenses in these markets, compared to that in Europe, for instance, has helped increase the company’s revenue and profits, he said.

Sales were up 15 per cent in the UAE this quarter from the same time last year, and 10 per cent in the GCC, he added.

Meanwhile, the ceramics manufacturer recorded Dh805.9 million in revenue in the first quarter of this year from Dh747.8 million during the same time last year.

Gross profit reached Dh223 million in the first quarter from

Dh200.8 million during the corresponding time last year.

In addition, operating profits amounted to Dh97 million in the first quarter from Dh67.7 million during the same time in 2012.

The company is working on increasing its capacity in ceramic products, including ceramic tiles, tableware and bath ware, Massaad said.

Ceramic products made up 83 per cent of the manufacturer’s revenue and 100 per cent of its profits this year, he said.

RAK Ceramics is further upgrading its facilities. “We are investing in a new technology that will be available in our factories by the end of this year,” he said, but did not reveal further details.

RAK Ceramics produces 117 million square metres of ceramic tiles, 4.5 million pieces of bath ware and 20 million pieces of tableware. The company recorded Dh223.1 million in profits last year.

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