Dubai: RAK Ceramics has come up with best ever quarterly revenues, with the April-June total at Dh927 million, up 32 per cent. Higher demand and pricing on its product-line also reflected on the bottom-line, with net profit at Dh102.2 million.
What would be particularly pleasing for RAK Ceramics is the further 0.3 per cent year-on-year gain in gross profit margin to an ‘all-time high’ of 38.4 per cent. “We remained diligent on optimizing logistics operations with better supply chain management and inventory control, to mitigate rising challenges,” said Abdallah Massaad, Group CEO, RAK Ceramics. “ We were also successful in maintaining an adequate liquidity position for Q2-2022, despite consolidation activity and challenging environment, enabling us to comfortably meet pay-out commitments.”
The Board of Directors has approved an interim dividend of 10 fils a share for H1-2022.
Nearly there with RAK Porcelain
The company, to-date, has completed 40 per cent acquisition of RAK Porcelain following an all-cash proposal shared to all minority shareholders, of which 37 per cent% were acquired as of June 30 and an additional 3 per cent stake last month. This brings RAK Ceramics’ ownership position up to 90 per cent with further stake acquisitions currently under negotiations.
The company also confirmed RAK Ceramics’ Bangladesh expansion is on the cards, which could add a capacity of 4.8 million square metres for tiles annually starting Q1-2025 and 400,000 pieces in faucets annually from Q2-2024.
The UAE company's net debt is up Dh351 million quarter-on-quarter to Dh1.32 billion as of June, following the acquisition of Kludi Group and RAK Porcelain during Q2-2022.