RAK Ceramics first-quarter profit rises
The world’s largest manufacturer of ceramics solutions RAK Ceramics has registered a 10.8 per cent increase in 2016 first-quarter profit to Dh65.9 million compared to Dh59.5 million a year ago.
The company’s overall revenues fell marginally to Dh735.7 million compared to Dh744.1 million during the same period last year, it said in a statement on Sunday. It added that the growth was led by a 3.3 per cent increase in the sale of tiles to Dh496 million and a 0.5 per cent increase in sanitary ware sales to Dh111.5 million, supported by restructuring efforts in ‘core markets’’ and the continued improvement of ‘non crore businesses’.
According to Gulf News, “Revenue in core markets remained strong with a 5.9 per cent increase in sales to Dh161.7 million in the UAE driven by market demand for tiles. In Bangladesh, sales increased by 6.8 per cent to Dh61 million on the back of investments to expand capacity in sanitary ware by 25 per cent in 2015.”
In India, restructuring efforts and depreciation of Indian rupee by 8.4 per cent year on year placed downward pressure on the quarter’s performance. Whilst revenues declined by 18.4 per cent to Dh81.1 million, the foundations have been laid to revamp operations and drive future growth for the business following the full acquisition of its Indian subsidiary in late 2015 and the recent appointment of a new chief executive officer, the company stated.
It added that despite a slower growing economy across Europe, RAK Ceramics’ sales to European countries rose by 7.5 per cent year on year.