UAE's RAK Ceramics' 9-month revenue at 2.6b despite cracks in Europe, India
European operations buffeted by inflation, while revenue from India dropped 14%
Dubai: RAK Ceramics’ gains in the UAE, Saudi Arabia and elsewhere in the region more than compensated for revenue drops in Europe and India, with Q3-2022 revenues at Dh906.4 million. That’s from a 32.4 per cent increase, while the nine-month tally hit Dh2.62 billion.
The net profit for the respective periods came to Dh90.1 million and Dh262.1 million. There was decline in gross profit margin by 3.2 per cent to 35 per cent by end September, with RAK Ceramics citing higher input prices, supply chain challenges and the recent disruption at its Bangladesh operations.
In the European markets, currency devaluation impacted on revenue, as did the high inflation and energy crisis continue. This could see a repeat in the final quarter of 2022, with Europe bracing for one of its toughest winters in recent times.
The company’s operations in India saw a 14.4 per cent revenue decline, given ‘challenging macroeconomic conditions’. “However performance remained strong given growth in dealer network footprint and improved efficiency albeit energy price increase,” RAK Ceramics said.
According to Abdallah Massaad, Group CEO, "As we set to wrap up this year, we remain cautiously optimistic about the future and we are confident that we are in a good position. We continue to work relentlessly through these unprecedented times to protect our market share by expanding our offering and solidifying our retail presence, and to boost our operations by optimizing production and investing in digital transformation.”
Net debt has increased, quarter-on-quarter by Dh89 million in Q3-2022 to Dh1.41 billion. This follows an interim dividend payment of Dh99.4 million and an acquisition of an additional stake in RAK Porcelain, which cost Dh22 million.
We progressed notably on various expansionary fronts, and we remain in line with our expansionary priorities set for this year