RAK Ceramics announces H1 2014 net profit of AED 149.9 million
Establishes Value Creation Plan to enhance shareholder value
RAK Ceramics, the world’s largest ceramics manufacturer, released its financial results for the first half of 2014 today. The results revealed a net profit of AED 149.9 Mio for the first six months of 2014 with net profit margins increasing to 9.0% compared to 8.6% for the same period in 2013. Total revenue generated during H1 2014 amounted to AED 1.66 Billion decreasing by 4.4 per cent from the same period in 2013. However, company’s strategy of refocusing on core ceramics businesses has been paying dividends as the core ceramics products revenues increased by 3.9 per cent to AED 1.41 Billion contributing 84.9 per cent of the total revenues (from 78.1 per cent last year).
“RAK Ceramics’ restructuring strategy of focusing on core ceramics business is continuing to have a positive impact on the overall business. The company is moving ahead firmly with its long term strategies with the recent establishment of an Executive Committee and the adoption of a Value Creation Plan by the Board of Directors to ensure operational enhancements and improve productivity on a global level” said Abdallah Massaad, CEO, RAK Ceramics.
This strategic re-focus resulted in RAK Ceramics’ EBITDA increasing over the period to AED 310.3 Million from AED 291.1 Million last year with EBIDTA margins significantly enhancing to 18.7 per cent for H1 2014 as compared to 16.8 per cent in H1 2013.
During Q2 2014, the company also reached a settlement for related party receivables worth AED 840 million via the receipt of a 270,000 square metres prime beach-front property in Al Jazeera Al Hamra, Ras Al Khaimah.
“RAK Ceramics continues to invest in new technology and machineries as part of its expansion plans to tap new market segments. The overseas expansions have doubled its production capacity of sanitaryware in India and Bangladesh to cater to growing local demands. Our latest range of pioneering products will be unveiled in the second half of the year primarily at major international trade fairs such as Cersaie, Bologna; Big 5, Dubai and Saudi Build, Riyadh” said Massaad. “This is a very exciting time for us. With the Samena Capital transaction consummated, we enhanced our corporate governance structures and adopted a Value Creation Plan to re-energize our growth, profitability and generate shareholder value. We now embark on a new journey to leverage our position as one of the world’s leader one stop solution provider of tiles, sanitaryware, faucets, bathroom fittings and tableware and maximize value to all our stakeholders” he added.