RAK Ceramics Records another Strong Financial Year
RAK Ceramics’ position as a global leader in ceramics and as one of the UAE’s most succesful companies was reinforced by another stellar operational and financial performance for the year ending December 2012.
The world's largest ceramics manufacturing company’s annual results, delivered to the Abu Dhabi Stock Exchange today, revealed a 9% increase in the profits attributable to the shareholders of the Company increasing from AED 205.2 million in 2011 to AED 223.1 million in 2012. The company also reduced its net loans during the year 2012 by AED 353 million. The Board of Directors of the Company has proposed a cash dividend distribution of 20% amounting to dividend of 20 fils per share.
The company has proposed a cash dividend after a period of 8 years. The Board of Directors of the Company has approved to adopt a dividend policy in line with market best practices with stable operations in companies.
“We are delighted to have delivered another strong performance against the backdrop of the challenging global economic situation, maintaining our track record of positive financial achievements consistently delivered over a period of two decades,” said Mr. Abdallah Massaad, CEO of RAK Ceramics.
“Under the direction of H.H. Sheikh Mohammed Bin Saud Al Qassimi, Crown Prince of Ras Al Khaimah and the Chairman of RAK Ceramics, the company is implementing the reorganization and refocusing program which includes investment in the core ceramics business, disinvestment of some of its non-core operations and reduction of loans strengthening the overall financial performance of the company” added Mr. Massaad.
The increase in profits of the Company in context of continued tough market conditions in different markets reflects the inherent robustness of the Company’s strategy of sustainable growth backed by exports to over 160 countries and results of the refocusing program to deliver improved profitability. The Company’s performance in 2012 improved largely due to significantly better results in the Core Ceramics segment of its businesses which reported an increase of 48% from previous year.
Mr. Massaad further added “RAK Ceramics has evolved from a simple manufacturer into a company which today delivers complete interior solutions in terms of tiles, bath ware, faucets, kitchen fittings and other auxiliary products to better cater to the discerning tastes of a growing client base in an ever-increasing and demanding international markets. Our status as one of the top global players in the ceramics market was reinforced by the strong sales number in 2012 as a result of investment in new technology and expansion in our production outputs. Penetration into new market segments with pioneering technology, innovative designs and solutions are seen as key to our future growth.”
The Company has also announced projects for expansion of tiles, sanitary ware and tableware capacities to address the growing demand for its products besides investments in upgrading the technology for next generation products, continuing the track record of innovation in global ceramic marketplace.
During the last year RAK Ceramics achieved a remarkable milestone of achieving cumulative sales of over one billion square meters of tiles that is unprecedented for ceramics manufacturing company in the region and in the current year has reached another unique milestone of achieving cumulative sales of 50 million pieces of bath ware products.
“RAK Ceramics' phenomenal success reflects that with dedication and innovation, global brands can be created and nurtured to meet the vision of the UAE leadership envisaging a diversified economy with global quality.” says Massaad. “RAK Ceramics has significant potential for further future growth and to contribute to regional economic development as there are clear opportunities in global markets for efficient and responsive UAE-based companies to deliver quality products consistently.”