Al Anwar Ceramic Tiles reported a 5.7 per cent rise in net profit for the six-month period ended June 30, 2011, on the back of increased demand generated locally as well as from other GCC countries.
Net profit increased to RO2.98mn from RO2.82mn in the corresponding period last year, the company said in a filing to the Muscat Securities Market (MSM).
Speaking to Muscat Daily, A Suresh, financial controller at Al Anwar Ceramic Tiles, said that the company achieved good sales on the back of high demand in the entire GCC.
"We are expecting to finish our expansion project by the end of this year. Currently we are working on full capacity. Our current production capacity is 10mn sq m and we will be able to produce an additional 3mn sq m from early next year to cater to the demand in the region."
"In the GCC, demand for ceramic tiles is much more than supply. We are expecting a very good performance next year," Suresh added. The company produced a total of 5.21mn sq m of tiles in the first six months of this year, while total sales grew by seven per cent to RO9.8mn.
In his report to shareholders, company chairman Hussain Ali Habib Sajwani said, "The performance of the first six months has been very satisfactory."
"Currently, all of our production lines are operating at peak capacity level. Through better asset utilisation and continuous improvement programs we have been able to further enhance our cost competitiveness."
He added that the company will continue to invest significantly into improving its branding and merchandising platforms not only in Oman but across the GCC markets.
"We remain focused on improving our cost competitiveness, which remains the corner stone of our strategy. We are very satisfied with our sales performance in Oman, where the Al Shams brand has established itself as the leading brand of ceramic tiles."
"We are satisfied with our sales performance across the other GCC markets as well, where Al Shams is finding increased acceptance."
The company's total assets grew by 13.4 per cent to RO29.7mn during the first six months of 2011.
© Muscat Daily 2011
