RAK Ceramics Posts Double Digit Profits for Third Quarter
World’s largest ceramics manufacturer’s AED 220.5 million figure 14% higher than last year
RAK Ceramics has announced that its profits for the third quarter this year are AED 220.5 million, a figure that represents a 14 per cent increase over its profits for the same period last year. The double digit increase from the world’s largest ceramics manufacturer corresponds with a reduction in its debt over the last twelve months and a jump in share prices to more than twice their value.
“RAK Ceramics’ third quarter profits for 2013 has increased to AED 220.5 million – a figure that we are extremely pleased with, given the fact that last year’s annual net profit of AED 224 million has been almost achieved within the first nine months of 2013 ” said Mr. Abdallah Massaad, CEO of RAK Ceramics. “We are delighted to announce that we have made even further gains in the intervening year with an after tax net profit that is 14 per cent higher, in comparison to Q3 2012 when we announced a net profit of AED 193.5 million.”
RAK Ceramics’ exceptional performance over the past nine months in 2013 has meant that it is on course to easily surpass 2012’s total annual net profit of AED 224 million and end the financial year of 2013 on a higher note. The increase reflects a sustainable business strategy of expansion into new markets and introduction of innovative product range that opened new avenues for RAK Ceramics. These have been further complemented with improved GCC market conditions, with the construction sector and real estate sectors ramping up activity. The company’s core ceramics section has contributed to the company’s overall revenue of 80 per cent and an overall profit of 86 per cent.
“RAK Ceramics has achieved success even in the face of tough economic conditions, thanks to the direction of H.H. Sheikh Mohammed Bin Saud Al Qassimi, Crown Prince of Ras Al Khaimah and the Chairman of RAK Ceramics,” said Massaad. “Now that market conditions are improving, we are able to reap the benefits of our continued commitment towards excellence in ceramics. RAK Ceramics’ profit margins have increased because we have continued strategy of investing in new technology that is helping to grow into new market segments that push the boundaries for ceramics manufacturing and offer exciting new product portfolios to our customers in over 160 countries,” he added.
Additional third quarter figures released by RAK Ceramics show that revenue increased by 8.86 per cent over last year and net debt decreased by AED 79 million from December 2012, a figure that represents 5.4 per cent debt reduction. The company’s increased output and turnover has been recognised by the stock market, with RAK Ceramics share prices more than doubling in the last twelve months.
RAK Ceramics exports 85% of its local production and has firmly established itself in some of the major markets around the world that has allowed it to have sustained growth in its business. RAK Ceramics’ recent milestones of global sales of 1 billion square metres of tiles and 50 million pieces of bathware exemplifies its phenomenal growth in the last two decades to firmly position itself as one of the leading ceramics manufacturers in the world with its pioneering range of products.