Abu Dhabi - Mubasher: Ras Al Khaimah Ceramics (RAK Ceramics), listed on the Abu Dhabi Securities Exchange (ADX), has reported an 8.5% year-on-year decline in its net profit for the first half of 2019, registering AED 110.3 million.

Total revenue reached AED 1.29 billion in H1-19, down by 6.8% year-on-year, RAK Ceramics said in a statement.

Sanitaryware revenue grew by 6.7% year-on-year during the first six months of 2019, backed by sales in Saudi Arabia, India, and Europe, while Tableware revenue rose 3.8%, supported by growth in the US and the GCC markets.

Total gross profit margin went up by 100 basis points (bps) in H1-19 to 34.2%, as compared to the year-ago period.

Moreover, earnings before interest, taxes, depreciation, and amortization (EBITDA) amounted to AED 239.8 million, up 8% year-on-year.

During the second quarter of 2019, net profit stood at AED 73.4 million, rising by 33.1% as compared to Q2-18.

Abdallah Massaad, Group CEO of RAK Ceramics, said: “We have seen an improvement in our gross margins during the period due to continued investment in operational efficiencies. Despite high energy costs, we remain focused on running an efficient and profitable business.

“Looking ahead to the remainder of 2019, we will continue to focus on mitigating energy costs and improving profitability in Europe and Saudi Arabia. Our business in India is on the right track and we hope to establish it as a hub moving forward. RAK Ceramics is also always on the lookout for opportunistic acquisitions, as we optimise production and protect our growth in India, Bangladesh, and the UAE,” he added.

In Q1-19, RAK Ceramics’ net profits totaled AED 29 million, down 48% from AED 56 million in Q1-18.

Source: Mubasher

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