RAK Ceramics Announces FY 2021 Financial results
February 2022
RAK Ceramics Announces FY 2021 Financial results


  • Total revenue increased by 21.8% to AED 2.86 billion and total EBITDA increased by 32.7% to AED 501.3 million during FY 2021 as compared to FY 2020
  • Reported net profit stood at AED 283.9 million for FY 2021. On a like-for-like basis, net profit grew by 102.5% to AED 298.1 million
  • RAK Ceramics maintains a robust capital structure with an improved net debt of AED 971.2 million in Dec 2021 with net debt to EBITDA standing at 1.94x
  • Total gross profit margin for FY 2021 increased by 420bps to an all-time high of 36.2%
  • The Board of Directors recommends a dividend distribution for the year 2021 of 20 fils per share out of which 10 fils per share were already paid in October 2021 as interim dividend.
  • The Board has also revised the dividend policy which now provides for a minimum dividend payout of 20 fils annually for FY 2022 to be paid on a semi-annual basis and further commits to pay minimum dividend of 60 fils over the next 3 years.


Ras Al Khaimah, United Arab Emirates, 7th February 2022: RAK Ceramics PJSC (Ticker: RAKCEC: Abu Dhabi), one of the largest ceramics’ brands in the world, announced today its financial results for the year ended 31 December 2021. RAK Ceramics reported that its total revenue increased 21.8% to AED 2.86 billion and total EBITDA increased 32.7% to AED 501.3 million during FY 2021 as compared to FY 2020.

The Board of Directors of RAK Ceramics has approved an amendment to the company’s dividend policy. The new policy stipulates a minimum dividend payout of 20 fils annually for FY 2022 to be paid on a semi-annual basis and also provides for a commitment to pay a minimum dividend of 60 fils over the next 3 years [i.e.2022-2024]. The revised dividend policy will be subject to factors such as business outlook, capital requirement for growth opportunities, expansion plans, optimal leverage levels and healthy cash reserves in addition to regulatory approvals. The revised dividend policy will be presented to shareholders for approval in the next Annual General Meeting.

The Board recommended to the shareholders the approval of a dividend distribution, for the year 2021, of 20 fils per share, out of which 10 fils per share were paid in October 2021 as an interim dividend.


Commenting on the results, Abdallah Massaad, Group CEO, RAK Ceramics said: “Despite the challenges, our business saw positive momentum and a gradual return towards normality with economic activities and trade resumption.

We reported a significant revenue increase in the first quarter of the year, marking a five-year high in terms of profitability. In addition to this, we reported three consecutive quarters of positive revenue growth, which resulted in a healthy net profit.

Our priority in 2022 is to protect our market share and further strengthen brand perception in our core markets with a sustained investment in brand initiates such as new showrooms, retail outlet stores and e-commerce platforms.

Despite rising input costs and supply chain disruptions we aim to sustain our current operating costs by enhancing our plants in UAE, India and Bangladesh, initiating the greenfield project in Saudi Arabia, and increasing selling prices to offset the increased freight costs in Europe.

We are committed to increasing efficiency while reducing our environmental impact and protecting the health and wellbeing of our employees. We will continue to evaluate the ongoing situation as the potential for new COVID-19 variants remains.”


Operational review


In the UAE, revenue decreased by 3.1% year on year due to a slowdown in the project segment.

In Saudi Arabia, RAK Ceramics’ position as a premium products provider and the strong demand in the Kingdom resulted in a revenue increase of 26.7% for FY 2021.

In Europe, revenue increased by 17% year-on-year but decreased quarter-on-quarter by 16.4%, mainly due to higher shipping freight rates caused by the global shortage in shipping containers. RAK Ceramics’ relentless focus on providing world class product management resulted in increased customer base which saw an overall increase of revenue in 2021.

In the Middle East (excluding UAE and KSA), revenue increased by 48% in FY 2021 considering that last year’s revenue was substantially impacted due to the pandemic.

In India, RAK Ceramics reported a strong revenue growth of 60.9% for FY 2021 underpinned by positive business sentiments, which reflected in improved profitability, despite significantly higher fuel costs.

Government lockdowns in Bangladesh resulted in temporary suspension of production lines. However, the company demonstrated resilience and reported strong revenue growth of 30% supported by differentiated products.

RAK Ceramics won key bids for flagship projects such as the strategic collaboration with ELIE SAAB to launch a bathroom and surface collection


Financial Highlights

RAK Ceramics delivered a robust financial performance in Q4 and FY 2021 with revenue and profitability surpassing pre-pandemic levels, despite the significant increase in logistics costs due to the global shortage of containers.

Total revenue for 2021 increased by 21.8% compared to same period last year to AED 2.86bn, driven by a strong growth trajectory in the core business. Reported net profit stood at AED 283.9 million, outperforming pre-pandemic levels (AED 205.2 million in 2019). In Q4 2021, revenue increased by 4.5% to AED 752.4 million mainly driven by the company’s operations in India, Bangladesh & Middle East markets and the Tableware business.

Like-for-like net profit increased by 102.5% for FY 2021 to reach AED 298.1 million underpinned by higher revenue and GP margins.

Total gross profit margin for 2021 reached an all-time high of 36.2%.

In FY 2021, tiles revenue grew by 21.3% year on year at AED 1.95 billion supported by growth in all markets except in United Arab Emirates market. Sanitaryware revenue grew by 17.5% year-on-year driven by all markets except Saudi Arabian market. Tableware revenue improved by 73% year-on-year.

Healthy cash position

The Company’s Net Debt level decreased to AED 971.2 million in December 2021 from AED 978.7 million in September 2021 after payment of interim dividend of AED 99.4m. At the end of December 2021, the company’s net Debt to EBITDA stood at 1.94x compared to 3.25x in December 2020.