RAK Ceramics delivered a 10.8 percent increase in first quarter net profit to AED 65.9mn ($18mn) despite heightened levels of uncertainty in global markets, and a relatively unchanged overall revenue of AED 735.7mn compared to AED 744.1mn for the first quarter of 2015.
Growth was led by a 3.3% increase in the sale of tiles to AED 496mn and a 0.5% increase in sanitaryware sales to AED 111.5mn supported by restructuring efforts in ‘core markets” and the continued improvement of ‘non crore businesses’.
Overall core revenue increased by 2.9% to AED 644.7mn, while non-core revenue reduced to AED 91mn in Q1 2016 from AED 117.7mn partly due to the sale of RAK Logistics.
Abdallah Massaad, RAK Ceramics’ Group Chief Executive Officer said: “RAK Ceramics has maintained its prudent approach of focusing on key growth markets during the first quarter of this year with capacity expansions, senior appointments and further consolidation of key assets in core markets.
“While global financial conditions have presented the business with a challenging economic environment, we are confident that we will see a solid performance in the next three quarters, thanks to our ongoing efforts to strengthen the business, reduce losses and increase margins.
“As we continue delivering on our Value Creation Plan, we intend to retain our position in key markets, keep an eye on opportunities for further expansions and retain the highest calibre of manufacturing talent available in the market.” he added.