Ras Al Khaimah-based company cites more efficiency, sale of non-core assets for leap
RAK Ceramics says third-quarter profit jumps more than fourfold
RAK Ceramics, the world's fourth largest ceramics manufacturer, said its third quarter net profit jumped more than fourfold amid greater efficiency, the exit of non-core businesses, and a rebound in regional growth.
Net income rose 365 per cent to Dh84.7 million in the three months ended September 30, the company said without giving the profit for the same period last year. On a nine-month basis, the company reported a Dh262.3m profit, a 76 per cent increase from the same period last year. Total revenue rose to Dh705.2m in the third quarter, a 9.2 per cent increase from the same period last year, it said.
"RAK Ceramics has made steady progress in 2017 and we continue to deliver on our value creation plan initiatives by investing in core business growth, maintaining cost efficiencies, growing our market share in the UAE, restructuring our Indian operations and implementing our strategy to drive profitability in Saudi Arabia," said Abdallah Massaad, the chief executive of RAK Ceramics.
"As a result of our strategy to exit non-core and non-performing businesses operations we have lightened the balance sheet, increased margins and enhanced returns for our shareholders."
In the UAE, revenues grew 17.7 per cent in the third quarter, driven by strong demand amid signs the country's economy is turning the corner. Meanwhile in neighboring Saudi Arabia where the impact of lower oil prices has taken a greater toll on its economy than on that of the UAE, tiles and sanitary ware revenues increased by 50 per cent to Dh65m.