RAK Ceramics posts 43% rise in Q3 2015 net profit
RAK Ceramics' net profits increased from $15.6m (AED57.4m) to $22.3m (AED82.1m) in 2015
UAE's RAK Ceramics recorded a 43% growth in its net profits for the third quarter of 2015, to $22.3m (AED82.1m) from $15.6m (AED57.4m) in the same period in 2014.
The performance was largely driven by an increased level of activity across RAK Ceramics’ businesses in core markets and margin improvements in tiles and non-core business.
Tiles sales witnessed strong growth with a 3.5% increase in the UAE at $33.2m (AED122.3m) and a 32.1% increase in Saudi Arabia at $31.2m (AED114.7m).
In October 2015, RAK Ceramics announced the full acquisition of the remaining 7.57% minority share of its Indian subsidiary, RAK India. These changes put downward pressure on Q3 2015 performance but plans are in place to quickly revamp business activity and deliver on strategy, the company said in its statement.
In 2015, the firm announced plans to revamp its business in Saudi Arabia and set a proactive strategy to strengthen its distribution network, energise B2B sales and expand its footprint through renting a 93,000 sqm warehouse in Riyadh.
Abdallah Massaad, Chief Executive Officer of RAK Ceramics, said: “RAK Ceramics has delivered a strong performance in Q3 2015, demonstrating the core strength of our business. Over the past year, we focused on core business and growth opportunities in core markets and succeeded in delivering results."
"Additionally, RAK Ceramics made significant efforts this year to expand in new global markets. The company opened a representative office in Singapore during the year to expand its presence in Asian markets, which has already borne fruit, and is looking to expand its presence in the Americas towards the end of 2016 as the company leverages its international capabilities."