UAE-based RAK Ceramics up 22% to AED 272million
UAE-based RAK Ceramics has announced its 2013 year-end profits reached AED 272 million, growing 22% (AED 48.3 million) over its net profits of AED224.0 million for 2012. In addition, the company has reduced its debt over the last twelve months of 10% (AED 149 million to AED 1,325 million).
CEO of RAK Ceramics Abdallah Massaad said: “Our final figures for 2013 represent one of our strongest years of performance, with our percentage profit margin being more than double of 2012’s nine percent net profit increase.”
He added: “A large proportion of our success we can attribute to H.H. Sheikh Mohammed Bin Saud Al Qassimi, Crown Prince of Ras Al Khaimah and the Chairman of RAK Ceramics, for his wise direction. This strong financial result lays the foundation for more growth, greater product line offerings and expansion into new markets. We shall not rest on our laurels but will continue with our aggressive yet sustainable approach of expanding our business in different market segments.”
The profits to the owners increased from AED223.1 million in 2012 to AED282.4million in 2013 marking a 27% increase. The company’s booard of directors have recommended 25% cash dividend to the shareholders following these financial results while last year the shareholders received 20% cash dividend.
RAK Ceramics’ total revenue increased by 11% for the year ending 2013, up by AED 347 million to 3, 515 AED million. The company’s ceramic product ranges contributed to 81% of RAK Ceramics revenue.
The company says optimisation of its resources across its overseas operations has contributed to the company’s profitability, which will be boosted by increasing investments in capacity in India and Bangladesh. The company has also expanding into new export markets, introduced product lines and invested in new technology at its UAE production units, in the last couple of months.
Massad said: “Market conditions are undoubtedly improving, with the positive economic climate now allowing us to reap the benefits of our continued drive towards excellence in ceramics”.
Last year, RAK Ceramics achieved the milestone of selling 50 million pieces of bathware since inception, which followed the landmark of the sale of one billion square metres of tiles.
RAK Ceramics is around USD 1 billion global conglomerate abd supplies more than 160 countries worldwide. According to the company, it is officially recognised as the world’s largest ceramics manufacturer with a global annual production output of 117 million square metres of ceramic and porcelain tiles, 4.5 million pieces of bathware and 20 million pieces of tableware.