ABU DHABI, 12th August, 2014 (WAM)-- RAK Ceramics has reported a net profit of AED149.9 million for the first six months of 2014, an increase of 9 per cent, compared to 8.6 per cent for the corresponding period last year.
The U.A.E.'s largest ceramics manufacturer said its total revenue during H1 2014 amounted to AED1.66 billion decreasing by 4.4 per cent from the same period in 2013. However, company's strategy of refocusing on core ceramics businesses has been paying dividends as the core ceramics products revenues increased by 3.9 per cent to AED1.41 billion contributing 84.9 per cent of the total revenues.
"RAK Ceramics' restructuring strategy of focusing on core ceramics business is continuing to have a positive impact on the overall business. The company is moving ahead firmly with its long term strategies with the recent establishment of an Executive Committee and the adoption of a Value Creation Plan by the Board of Directors to ensure operational enhancements and improve productivity on a global level" said Abdallah Massaad, CEO, RAK Ceramics.
This strategic re-focus resulted in RAK Ceramics' EBITDA increasing over the period to AED310.3 Million from AED 291.1 million last year with EBIDTA margins significantly enhancing to 18.7 per cent for H1 2014 as compared to 16.8 per cent in H1 2013. During Q2 2014, the company also reached a settlement for related party receivables worth AED840 million via the receipt of a 270,000 square metres prime beach-front property in Al Jazeera Al Hamra, Ras Al Khaimah.
"RAK Ceramics continues to invest in new technology and machineries as part of its expansion plans to tap new market segments. The overseas expansions have doubled its production capacity of sanitaryware in India and Bangladesh to cater to growing local demands. Our latest range of pioneering products will be unveiled in the second half of the year primarily at major international trade fairs such as Cersaie, Bologna; Big 5, Dubai and Saudi Build, Riyadh," added Massaad.