DUBAI
Abu Dhabi-listed Rak Ceramics announced its results for the second quarter ended June 30, in a statement released on Thursday.
The manufacturer of floor tiles and bathroom ceramics reported a net profit of Dh113.2 million, which represents an increase of 73 per cent compared to the same period in 2016, and a quarter-on-quarter increase of 76 per cent compared to the first quarter of 2017.
Driven by strong growth in the UAE and Bangladesh markets, core revenues increased by 6.5 per cent to Dh661.1 million, remaining stable year-on-year. The company has made an effort to streamline its business, focusing on its core revenues and winding down its peripheral activities.
The decrease in non-core business led to a decrease in total revenues by 5 per cent year-on-year to Dh721 million.
In its results, RAK Ceramics described the “continued pressure in the Mena [Middle East and North Africa] region” due to the “macro and political situation,” and says as a result, revenues in the UAE (the company’s largest market) continued to grow, led by strong demand and robust project sales.
Abdullah Massaad, Group CEO, RAK Ceramics said in a statement: “RAK Ceramics has made steady progress in the second quarter of 2017 and our strategy, which includes exiting non-core businesses, has helped lighten the balance sheet, increase margins and enhance returns for shareholders. We are delivering on our initiatives, including market share growth in the UAE, restructuring India, executing Saudi strategy to drive further profitability and continue investing in the brand which has been rolled out in the Middle East and Bangladesh, and initiated in Saudi [Arabia].”
