Ras Al Khaimah, UAE— RAK Ceramics has reported a 14.9 percent increase in net profit to $22 million for the first quarter of 2023, driven by higher revenue and gross profit margins.
This came in a statement announcing the company’s financial results for the quarter ended 31 March 2023, where it reported a total revenue of $240 million, an increase of 12.7% and a total EBITDA of $43 million, an increase of 21% during Q1 2023 compared to Q1 2022.
Commenting on the results, Abdallah Massaad, Group CEO, RAK Ceramics, said, “RAK Ceramics announced its results for Q1 2023 which continues to be resilient despite the ongoing economic challenges weighing in namely due to higher interest rates, currency devaluation, recessionary fears in major markets and increased competition.
“Our performance in UAE market remains solid, allowing us to maintain a strong position as we encounter challenges in other major markets in the form of local competition, recessionary fears and currency devaluation. Despite these obstacles, our unwavering commitment lies in positioning ourselves as a trusted premium supplier and we will continue to actively expand our retail presence in the region.”
RAK Ceramics realised further advancements in terms of expansionary plans and Greenfield projects. In the UAE, the company is working on enhancement and additions to its capacity for tiles, sanitaryware and tableware divisions; commercial production post completion of such projects are estimated to be materialised in 2023.
In Bangladesh, the company acquired land in Aug 2022 for the set-up of recently approved greenfield project.
Last year the company acquired four per cent stake in RAK Porcelain, bringing RAK Ceramics ownership position up to 91 per cent following an all-cash proposal shared to minority shareholders.
In Saudi Arabia, RAK Ceramics signed a Conditional Investment Agreement with the Royal Commission of Jubail & Yanbu, which stipulates the allocation of Yanbu land to RAK Ceramics.
Additionally, RAK Ceramics executed contract for sale of land in Australia, for a consideration of A$28 million, which is equivalent to almost Dh65 million, recording a net gain of Dh18.5 million after tax for Q3 2022.