RAK Ceramics’ Q3 revenue soars 52.1%

dubai — RAK Ceramics said on Wednesday that third quarter performance had gained momentum with a 52.1 quarter-on-quarter surge in revenue as markets show signs of recovery from the impact of Covid-19.

Total revenue remained stable and increased by 0.2 per cent year on year to Dh625.7 million for the quarter, driven by growth in Saudi Arabia and Europe. Excluding the tableware business, total revenue increased by 4.8 per cent year on year.

Net profit fell to Dh34 million from Dh45.6 million due to lower gross profit margins and higher provisions for trade receivables. Total EBITDA dropped to Dh104.4 million from Dh108.7 million, the company said in a statement.

The global ceramic giant said production in the UAE has scaled up to meet demand from Saudi Arabia while production in India and Bangladesh have also resumed in phases. The tableware business continues to suffer due to the impact of Covid-19 on the hospitality and airline sectors. The imposition of anti-dumping duty on tiles from China and India has been effective since June 2020 and has supported revenue growth during the quarter.

Revenue from Saudi Arabia increased by 95.8 per cent year on year to Dh137.8 million mainly driven by the tiles business, while revenue in Europe surged by 12.9 per cent to Dh91.5 million due to the easing of lockdowns resulting in improved economic activity. Revenue in India has also rebound to pre-Covid levels to Dh66.7 million, said the statement.