Profits up at RAK Ceramics despite lower sales
Board approves plans to boost capacity in India and at Bangladesh site
RAK Ceramics, the biggest producer of ceramic tiles in the world, has announced that profits had edged up slightly to $61m (AED: 224m) despite a 5% drop in sales to $862.6m (AED: 3.17bn).
Notes to the accounts prepared by CEO Abdallah Massaad and chairman HH Mohammad bin Saud Al Qasimi stated that it had been a "challenging" year both for the Middle East and the global economy as a whole, which had impacted on demand - particularly in the market for building materials.
However, they added that the the company had hit a couple of makor milestons, including the supply of 1m m2 and 50m pieces of sanitaryware since its inception in 1991.
The directors also said that they remained "optimistic" about the company's future prospects, due to continued global population growth and unbanisation, a shortage of housing stock - particularly in emerging markets and in the MENA region. The firm also pointed to its stable capacity levels.
As a result, the board said that the firm "expects to enhance its revenues and profits further to the level achieved in 2012.
Following the approval of its accounts, the company proposed a cash dividend of 20% of capital. The board also approved a number of capital projects including an extension of the range of sanitaryware it manufactures in India and a further upgrade of technology at its main HQ in Ras Al Khaimah, which is responsible for more than 50% of its capacity and already has hi-tech facilities such as digital printing and robotic glazing.
The company also plans to upgrade its tile production capacity in Bangladesh.