RAK Ceramics H1-23 revenue up 2.6% to Dh1.7 billion
Net profit for H1-2023 decreased to Dh155.2 million due to lower revenue and margins
Dubai: RAK Ceramics, one of the largest ceramics lifestyle solutions providers in the world, reported a H1 2023 revenue increased by 2.6 per cent year on year to Dh1.75 billion, mainly driven by the consolidation of the faucets business.
Gross margin remained stable year on year at 37.6 per cent for H1-2023. EBITDA for the first half of 2023 increased by 6.3 per cent year on year to Dh312.4 million, with an improved margin of 17.8 per cent.
Net profit for H1-2023 decreased to Dh155.2 million due to lower revenue and margins.
The Board of Directors proposed an interim dividend distribution of 10 fils per share (Dh99.4 million) for H1-2023.
“We are sailing against a challenging backdrop of increased competition intensity, higher inflation, rising interest rates and currency fluctuation,” said Abdallah Massaad, Group CEO, RAK Ceramics. “As we witness a dynamic shift in global trends and customer preferences, we are steering our product offering away from the conventional ceramic tiles into porcelain tiles. We foresee a substantial surge in global demand for porcelain tiles especially with regard to the upcoming premium real estate projects globally.”
Looking forward
RAK Ceramics said that the company's UAE expansion projects, including the capacity expansion for tableware, remain on schedule. In Bangladesh, construction works to upgrade and enhance capacity are ongoing, albeit the commencement of production has been pushed by a quarter to Q2 2024. The company has received the necessary approvals and permissions for its greenfield projects in Bangladesh and Saudi Arabia, paving the way for construction to commence.