Latest news with #RAKCeramics
Zawya
19-05-2025
- Business
- Zawya
RAK Ceramics achieves nearly $13.28mln profits in Q1-25
Abu Dhabi: RAK Ceramics registered AED 48.87 million in the first quarter (Q1) of 2025, lower by 22.30% than AED 62.90 million in Q1-24. The company generated revenues amounting to AED 776.53 million as of 31 March 2025, down 0.70% year-on-year (YoY) from AED 781.62 million, according to the financial results. Basic and diluted earnings per share (EPS) declined to AED 0.047 in Q1-25 from AED 0.058 a year earlier. Abdallah Massaad, Group CEO of RAK Ceramics, said: "In Q1-25, we faced a highly complex macroeconomic landscape, characterized by geopolitical uncertainties, inflationary pressures, and shifting consumer demand.' 'Despite a minor revenue decline of 0.70%, our gross profit margins improved, on the back of rolling out improvements in operational efficiency,' Massaad elaborated. He added: 'The UAE continues to be our strongest market with growth driven by robust real estate activity, while our KSA market continues to show encouraging signs, aided by recent customs duty relief measures.' 'We have made strategic progress in manufacturing, with our new large-format tile production facility in the UAE currently in the commissioning stage. The facility will be commercially operational by the end of 2025,' the CEO noted. In 2024, the net profits retreated by 27% YoY to AED 234.08 million from AED 320.85 million.
Zawya
15-05-2025
- Business
- Zawya
RAK Ceramics set to launch plant in Saudi Arabia
RAK Ceramics, which is listed on the Abu Dhabi stock market, is awaiting gas supplies to launch its first production unit in Saudi Arabia as part of an ambitious expansion plan, the Company's CEO said on Thursday. 'The Saudi market is a promising one…the company will transition from distribution to both production and distribution in Saudi Arabia by establishing a factory there, which is awaiting gas supplies,' Massad said. He said production in the four sectors in which the company operates is growing, with the total capacity of the ceramic factories reaching 118 million square metres, which makes the company among the top 5 ceramics producers in the world. As for the Company's performance, he said profits were affected in the first quarter due to the significant increase in shipping prices, noting that the current situation is improving, which will positively impact profits in the coming period. He noted that debt-to-EBITDA ratio stands at below 2.5 times, which is comfortable for the company. He revealed that there are facilities from banks and cash flows from operations that support expansion plans. Masada said there was growth in operations in the UAE and Saudi Arabia in the first quarter and the Gulf remains the Company's largest market, followed by Europe. In 2022, RAK Ceramics said it has signed an agreement with Saudi authorities to build a plant in the Western Yanbu industrial zone at a cost of 500 million UAE dirhams ($136 million). (Writing by Nadim Kawach; Editing by Anoop Menon) (
Zawya
15-05-2025
- Business
- Zawya
RAK Ceramics announces Q1 2025 financial results
Group revenue: Experienced a marginal decrease of 0.7% year-on-year (YoY) to AED 776.5 million in Q1 2025, primarily attributable to weaker Euro, BDT & INR vs USD. On currency rates of last year, revenue is higher by 0.7% YoY. Gross profit margin: Improvement by 33bps YoY to 39.7% in Q1 2025, up from 39.3% in Q1 2024. EBITDA performance: EBITDA decreased by 10.3% YoY in Q1 2025 to AED 135.6 million from AED 151.1 million in Q1 2024. Profit before tax: Decreased by 12.7% YoY to AED 64.5 million, compared to AED 73.9 million in Q1 2024. Kludi Group's transformation initiatives has impacted profitability by AED 8.4 million. Excluding this impact, profit before tax was AED 74.4 million, marginally down by 1.4% YoY. Financial health: Net debt position stood at AED 1.43 billion in Q1 2025, registering an increase of AED 40.8 million from December 2024 mainly due to Capex payments. Ras Al Khaimah, United Arab Emirates: RAK Ceramics PJSC (Ticker: RAKCEC: Abu Dhabi), one of the largest ceramics and porcelain lifestyle solutions provider in the world, today announced its financial results for the first quarter ended 31 March 2025. Q1 2025 Financial Highlights Our Q1 2025 performance has shown resilience in the face of macro-economic challenges. During this quarter, total revenue experienced a marginal decrease of 0.7% year-on-year (YoY) to AED 776.5 million. However, calculated on the basis of 2024 currency exchange rates, revenue has increased slightly by 0.7% YoY. In Q1 2025, the gross profit margin increased by 33bps to 39.7% YoY, driven by enhanced operational efficiencies. EBITDA decreased to AED 135.6 million in Q1 2025 compared to AED 151.1 million in Q1 2024, while the EBITDA margin decreased by 1.8% to 17.5% in Q1 2025 from 19.3% in Q1 2024. Profit before tax decreased by 12.7% YoY to AED 64.5 million, compared to AED 73.9 million in Q1 2024. Kludi Group's transformation initiatives has impacted profitability by AED 8.4 million. Excluding this impact, profit before tax was AED 74.4 million, marginally down by 1.4% YoY. Net profit after tax decreased by 22.3% YoY to AED 48.9 million, compared to AED 62.9 million in Q1 2024. This decrease is attributable to Kludi Group's transformation impact and the newly introduced Domestic Minimum Top- up Tax under Globe Pillar-2 rules. Effective tax rate of UAE based entities is at 13.5% up from 9% last year. `Net debt position stood at AED 1.43 billion in Q1 2025, registering an increase of AED 40.8 million from December 2024 mainly due to capex payments. Financial highlights Segmental performance highlights Tiles revenue continued to grow in Q1, up 1.2% year-on-year to AED 448.9 million, led by strong performance in the UAE and Indian markets, with an increasing contribution from high-margin project and retail channels. Sanitaryware experienced a decline of 6.5% in revenue. However, gross margins improved by 444bps, driven by a favorable shift in product mix. Tableware division reported a decline in revenue of 4.5% to AED 85.9 million for Q1 2025, primarily impacted by a weaker Euro and slower demand in US. However, UAE and Middle East market have performed well, driven by new commercial agreement with an airline and expansion of distributors. Faucets revenue declined 4.4% to AED 111.7m also due to a weaker Euro, recessionary fears in Europe, and a struggling real estate sector in China. Tiles & Sanitaryware market highlights UAE: Continued to register growth in revenue mainly driven by the Tiles segment, supported by robust real estate and construction activity. Enhanced operational efficiencies in UAE tile plants have driven higher gross margins. Saudi Arabia: Demonstrated steady growth in Q1 2025, with revenue up 4.4% to AED 69.1 million, supported by relief in levy of customs duties on exports from the UAE, allowing RAK Ceramics to regain market share lost in the wholesale segment. Europe: Revenue has remained resilient in local currency (LCY) resisting recessionary fears and driven by growth in the German market and the Italian market. Overall revenue fell 1.4% to AED 77.0m. India: India registered moderate growth with revenue growth of 2.8% in LCY, driven by expansion of the dealer's network. Bangladesh: Experienced a sharp decline in business performance due to ongoing political instability, gas shortage, inflation, and currency devaluation. Commenting on the results, Abdallah Massaad, Group CEO, RAK Ceramics said: "In Q1 2025, we faced a highly complex macroeconomic landscape, characterized by geopolitical uncertainties, inflationary pressures, and shifting consumer demand. Despite a minor revenue decline of 0.7%, our gross profit margins improved, on the back of rolling out improvements in operational efficiency. The UAE continues to be our strongest market with growth driven by robust real estate activity, while our KSA market continues to show encouraging signs, aided by recent customs duty relief measures. We've made strategic progress in manufacturing, with our new large-format tile production facility in the UAE currently in the commissioning stage. The facility will be commercially operational by the end of 2025. The market is volatile. So, looking ahead, we remain committed to our strategic priorities centered on protecting market share, optimizing operations, and expanding production capabilities. By leveraging technology and targeted investments, we aim to enhance resilience and create long-term value for our investors and customers." Strategic Highlights Expansion In the UAE, continued investment in brand positioning and strategy has allowed us to maintain higher ASPs compared to competition. Investing in upgrading Tiles production facilities to produce differentiated and large format Tiles. Investing in UAE Sanitaryware production facility to improve efficiency and reduce carbon emissions. Greenfield projects In KSA, continuing to work towards setting up a production facility. Awards & Recognition Strategic participation in ISH 2025 in Frankfurt, showcasing our innovative product designs and technologies to key industry stakeholders and strengthening relationships with stakeholders. About RAK Ceramics RAK Ceramics is one of the largest ceramics brands in the world. Specializing in ceramic and grès porcelain wall and floor tiles, tableware, sanitaryware and faucets, the Company has the capacity to produce 118 million square meters of tiles, 5.0 million pieces of sanitaryware, 36 million pieces of porcelain tableware and 2.6 million pieces of faucets per year at its 24 state-of-the-art plants across the United Arab Emirates, India, Bangladesh and Europe. Founded in 1989 and headquartered in the United Arab Emirates, RAK Ceramics serves clients in more than 150 countries through its network of operational hubs in Europe, Middle East and North Africa, Asia, North and South America and Australia. RAK Ceramics is a publicly listed company on the Abu Dhabi Securities Exchange in the United Arab Emirates and as a group has an annual turnover of approximately US$1 billion. Contact Us If you have any questions or require further information, please do not hesitate to contact our investor relations department. Investor Relations: RAK Ceramics PJSC Sarang Dublish E. ir@ | For media enquiries please contact: Kekst CNC (Financial communications advisor) Gregor Riemann E. Tan Siddique E.
Zawya
13-02-2025
- Business
- Zawya
RAK Ceramics posts 27% lower profits in 2024; dividends for H2-24 proposed
Abu Dhabi: RAK Ceramics logged net profits valued at AED 234.08 million in 2024, down 27% year-on-year (YoY) from AED 320.85 million. The revenues stood at AED 3.23 billion as of 31 December 2024, an annual drop of 6.50% from AED 3.45 billion, according to the financial results. Basic and diluted earnings per share (EPS) plunged to AED 0.22 last year from AED 0.29 in 2023. The company attributed the decline to global macroeconomic factors, including ongoing geopolitical tensions, inflationary pressures, and supply chain disruptions. Financials for Q4 In the fourth quarter (Q4) of 2024, the company's revenues went up by 0.50% to AED 870.90 million from AED 866.40 million in Q4-23. Net profits dropped by 21.50% to AED 64.20 million in Q4-24 from AED 81.80 million a year earlier. Quarterly, the net profits generated in Q4-24 jumped by 14.80% from AED 55.90 million in Q3-24, while the revenues increased by 8.50% from AED 802.50 million. Abdallah Massaad, Group CEO of RAK Ceramics, said: 'In Q4, we faced a complex macroeconomic landscape, characterized by geopolitical uncertainties, inflationary pressures, and shifting consumer demand. This was compounded by currency fluctuations and supply chain constraints, which knocked our top-line performance and profitability.' 'Looking ahead, our strategic priorities centre on protecting our market share, optimising operations, further diversifying our offering, accelerating digitalisation, and expanding our production capabilities,' Massaad added. The CEO noted: 'By leveraging technology and targeted investments, we aim to enhance resilience and create long-term value for our investors and customers.' Additionally, the board proposed a dividend distribution of 10 fils per share, equivalent to AED 99.40 million, for the second half (H2) of 2024.
