RAK Ceramics revenue stays stable in Q2

ras al khaimah — RAK Ceramics PJSC, one of the largest ceramics’ brands in the world, announced its financial results for the second quarter ended 30 June 2018.

The company reported steady year on year performance with total revenues stable at Dh719.2 million and core revenues growing by 2.6 per cent to Dh678.4 million. RAK Ceramics’ total revenues decreased by 0.3 per cent year on year due to a decrease in non-core revenues by 31.9 per cent, reflecting the complete discontinuation of the rough grading business in line with the company’s Value Creation Plan.

Total gross margin increased by +110bps to an all-time high of 34.4 per cent and core gross margins increased by +50bps to an all-time high of 34.7 per cent compared to Q2 2017, despite an increase in raw material costs and energy prices. RAK Ceramics continued to invest in upgrading of machines and the installation of co-gen and heat recovery systems to reduce the consumption of gas and power.

Reported net profit for the quarter was Dh55.1 million compared to Dh113.2 million in Q2 2017, however net profit in Q2 2017 included Dh34.8 million of net extraordinary gain from the sale of RAK Warehouse. Net profit was also impacted by an increase in energy costs, foreign exchange losses, general and distribution expenses and investments in Saudi Arabian entities, brand building expenses in India and in the US for the tableware business.