RAK Ceramics reveals $40.8mn net profit for H1
Total revenue generated during first six months was $451.9mn
RAK Ceramics, the world's largest ceramics manufacturer, has revealed a net profit of AED149.9mn ($40.8mn) for the first six months of 2014 with net profit margins increasing to 9% compared to 8.6% for the same period in 2013.
Total revenue generated during H1 2014 amounted to AED1.66bn ($451.9mn) decreasing by 4.4% 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% to AED1.41bn ($383.8mn) contributing 84.9% of the total revenues (from 78.1% last year).
Abdallah Massaad, CEO, RAK Ceramics, said: "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."
The strategic refocus resulted in RAK Ceramics' EBITDA increasing over the period to AED310.3mn ($84.4mn) from AED 291.1mn ($79.2mn) last year with EBIDTA margins significantly enhancing to 18.7% for H1 2014 as compared to 16.8% in H1 2013.
During Q2 2014, the company also reached a settlement for related party receivables worth AED840mn ($228.6mn) via the receipt of a 270,000m2 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.
RAK Ceramics is a $1bn global conglomerate that supplies to over 160 countries and has been officially recognised as the world's largest ceramics manufacturer with a global annual production output of 117mn m2, 4.6mn pieces of bathware and 24mn pieces of tableware.