Dubai: RAK Ceramics reported on Tuesday a 43 per cent jump in third quarter profit, that it said, was due to margin improvements and core business growth.
The company made Dh82.09 million in profit in the three months to September 30, 2015 compared to Dh57.414 million in the same period a year ago, according to the company’s statement on the Abu Dhabi Stock Exchange (ADX). Revenue was flat at Dh782.779 million.
RAK Ceramics said it found Dh15.2 million in benefits over the period from controlled operating costs and procurement savings while the Saudi Arabian market witnessed a 32.1 per cent increase in tiles sales to Dh114.7 million. Tile sales in the UAE rose 3.5 per cent to Dh122.3 million
The company is investing in the Saudi market in a bid to regain market share. It said it is expanding its presence in the country with a 93,000 square metre warehouse it is renting in the capital, Riyadh. Over the third quarter, RAK Ceramics said it spent Dh107 in capital expenditure and is on track to spend a total of Dh300 million by the end of the year.
RAK Ceramics’ Chief Executive Officer, Abdullah Massaad, said that after focusing on the core business, including growth opportunities in core markets over the past year, RAK Ceramics will look to new markets in 2016. It plans to expand its presence in the Americas in the second half of 2016, he said.
In October this year, RAK Ceramics took full ownership of RAK India, and in August it took full control of RAK Iran.
The company’s shares closed up 2.9 per cent on Tuesday at Dh3.55 on the ADX.
