2023-05-12 06:17:58
Total revenue increased by 12.7% to reach AED 882.4 million, and total EBITDA increased by 21% to reach AED 157.1 million during the first quarter of 2023 compared to the first quarter of 2022.
Gross gross profit margin for the first quarter of 2023 increased to 37.9%, an increase of 90 basis points annually driven by improved efficiencies.
Recorded net profit increased by 14.9% year-on-year to AED 80.1 million in the first quarter of 2023 as a result of higher revenues and gross margins.
Net debt to EBITDA increased to 2.42 times in March 2023 compared to 2.26 times in December 2022. The increase in net debt is due to dividends and an increase in working capital.
Ras Al Khaimah, United Arab Emirates: Ras Al Khaimah Ceramics P.J.S.C. (listed on the Abu Dhabi Stock Exchange under the symbol: (RAKCEC), which is one of the largest global brands, today, announced its financial results for the first quarter ending on March 31, 2023. Ras Al Khaimah Ceramics recorded total revenues of AED 882.4 million, an increase of 12.7% and total income before interest, taxes, depreciation and amortization of AED 157.1 million, an increase of 21% during the first quarter of 2023 compared to the first quarter of 2022.
Commenting on this, Mr. Abdullah Massad, CEO of RAK Ceramics Group, said: “The company remains resilient despite the ongoing economic challenges specifically due to rising interest rates, currency depreciation, recession fears in key markets and increased competition.
The company’s performance in the UAE market remains strong, allowing it to maintain a strong position as it faces challenges in other key markets in the form of local competition and fears of recession and currency depreciation. Despite these obstacles, the company is firmly committed to positioning itself as a premium and trusted supplier and will continue to expand its retail footprint in the region.”
Strategic highlights:
RAK Ceramics continues its progress in its expansion plans in its various markets.
Expansion projects in the United Arab Emirates: The commercial production of the smart tiles factory has begun. This factory features smart tile automation and IoT technologies to revolutionize the tile industry. Cutlery capacity expansion is still ongoing, with commercial production in the third quarter of 2023 estimated at an additional 10 million pieces.
New projects: With regard to new projects in Bangladesh and Saudi Arabia, the company continues its activity by obtaining the necessary licenses and approvals.
Operational Highlights:
Tiles revenue witnessed a steady growth of 0.9% year-on-year to reach AED 520.9 million driven by an increase in selling prices due to change in product mix. We continue to face challenges due to high natural gas prices, competition from regional players and increased imports. However, we have managed to maintain our margin through a premium product strategy, which has allowed us to strengthen our position in the retail and enterprise segment.
Sanitary ware revenue witnessed a YoY decline of 16.6% to AED 129.2 million due to lower purchases in European markets due to ongoing economic challenges and business turmoil in Bangladesh due to intermittent low pressure in gas supplies. However, we remain confident in our growth prospects in Europe and Bangladesh, given low inflation and lower freight rates.
The Cutlery business posted a strong performance on the back of the successful launch of a new range of products and building on growing demand with revenue up 28.9% year-on-year to AED 97.6 million.
Bathroom accessories revenue continues to grow, reaching AED 111.6 million in the first quarter of 2023, of which a merger contribution with Claudie Group amounted to AED 105.1 million.
Financial indicators:
The company delivered a solid set of results during the first quarter of 2023 despite the ongoing economic challenges.
Total revenue for the first quarter of 2023 increased by 12.7% compared to the same period last year, reaching AED 882.4 million. The Tiles and Sanitary Ware divisions continue to contribute over 74% of the total revenue mix followed by the consolidation of Claudie Group which added AED 105.1 million in Q1 2023.
Gross gross profit margin for the first quarter of 2023 increased to 37.9% compared to 37% in the first quarter of 2022. Driven by an increase in the tile and tableware profit margin.
Recorded net profit increased to AED 80.1 million during the first quarter of 2023 compared to AED 69.7 million in the first quarter of 2022 as a result of higher revenues and gross margins.
net debt position:
Net debt increased by AED 157.7 million to reach AED 1.46 billion compared to December 2022 mainly due to a cash dividend of AED 112 million and an increase in working capital. Net debt to EBITDA increased to 2.42 times in March 2023 compared to 2.26 times in December 2022.
Sustainability
RAK Ceramics is strongly committed to sustainability and reducing our carbon footprint. Recent investments include efficient online mosaic production, environmentally friendly tile recovery and recycling processes, and an advanced scanning solution. Long-term investment includes waste use and energy consumption.
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About Ras Al Khaimah Ceramics PJSC
Ras Al Khaimah Ceramics is one of the largest ceramic brands in the world, specializing in ceramic tiles and porcelain stoneware for walls and floors, tableware, sanitary ware, and bathroom accessories. The company produces 118 million square meters of tiles and 5.7 million pieces of sanitary ware annually, 26 million pieces of porcelain tableware and one million pieces of bathroom accessories annually in 23 first-class factories in the United Arab Emirates, India and Bangladesh.
RAK Ceramics was established in 1989 and is headquartered in the United Arab Emirates. We serve customers in more than 150 countries through a network of operational centers in Europe, the Middle East, North Africa, Asia, North and South America and Australia.
Moreover, RAK Ceramics is publicly listed on the Abu Dhabi Stock Exchange in the United Arab Emirates, and on the Dhaka Stock Exchange in Bangladesh and as a group achieves annual sales of regarding $1 billion.
Contact:
All information is available on the company’s website www.rakceramics.com
1683875565
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