RAK Ceramics delivers "stable" revenues of $161.3m in Q1'20
The company was proactive in implementing a slew of measures designed to mitigate the impact of COVID-19
RAK Ceramics, which is touted to be among the largest ceramics brands globally, recently announced its financial results for Q1 2020.
The company noted stable revenues of $161.3m (AED592.8m), which saw a year-on-year decline by 2.7%.
The company's total gross profit margin increased by 110 basic points due to improvements and efficiencies in operations of the tiles business.
Reported net profit decreased by 18.1% year on year to $8.22m (AED30.2m), with a margin of 5.1% due to decrease in revenue and investments.
The company's total revenue in Saudi Arabia increased by 80.8% year-on-year.
Speaking about the company's financial performance, group chief executive officer of RAK Ceramics, Abdallah Massaad, said: “RAK Ceramics delivered satisfactory results in Q1 2020 considering the COVID-19 pandemic began to impact our business from the end of January. The nature of our business is closely linked to the construction and hospitality sector, which were heavily affected by the pandemic. We expect this situation to impact our performance in the next few months but we are confident given our stable results in Q1, our strong foundations and a sound business model, we will be able to face this unprecedented challenge and move forward."
The company was proactive in implementing a slew of measures designed to mitigate the impact of COVID-19 and the corresponding lockdowns across all its markets.
RAK Ceramics has taken measures to manage its liquidity, reducing discretionary expenses and placing non-essential capex plans on hold.
In addition, it was one of the first UAE companies to adopt social distancing, and implement a remote working system.
RAK Ceramics also completely shut down production in India and Bangladesh in line with the government’s guidelines as of the end of March 2020 and reduced production in the UAE.
Alternative sales channels have been opened in markets where retail operations are closed, and the company’s website now includes a virtual reality showroom experience.