Increase in European sales and gross margins some of the highlights of the quarter for UAE-based ceramics major
The UAE’s RAK Ceramics has reported a 5.9% fall in group revenue for the second quarter of this year while its consolidated gross margin and European sales both saw increases during the period.
In the quarter ended June 30, the Ras Al Khaimah-based ceramics manufacturer saw its aggregated net revenue reach AED 757 million, a year-on-year fall of 5.9%, the company said in a statement.
It attributed the fall to a decline in non-core revenues, which dropped 3.6% in the first half of the year to AED 1.49 billion.
RAK Ceramics said its consolidated gross margin for the period rose to 29.5%, increasing by 220 basis points year-on-year, driven by improved non-core margins, the statement added.
The bright spot for the quarter was the 11.1% quarter-on-quarter increase in RAK Ceramics’ overall sales in the European market. The company also reported an 11.7% increase in tiles sales and a 9.4% quarter-on-quarter rise in sanitary ware sales.
Abdallah Massaad, RAK Ceramics’ group CEO said: “We are focused as a group to strengthen the company’s global presence by carrying out strategic global initiatives despite the ongoing challenges in our region. There are a number of encouraging signs that will support RAK Ceramics’ growth and we have an ambitious plan for the group’s future development.
“In Q2, we maintained our approach of focusing on increasing efficiencies by strengthening our core businesses, consolidating our operations in core markets and streamlining costs. With 25 years of ceramics expertise, the company is in a very strong position to capitalise on its global network, wide product range and revitalised brand proposition to deliver long term growth. RAK Ceramics is a real global competitor with solid foundations.”
Under its long-term Value Creation Plan, RAK Ceramics integrated its European distribution operations and continued expansions in Bangladesh and the UAE in the quarter, the company’s statement added.
Other highlights of the quarter were a 4.6% rise in UAE revenues and a 3.1% gain in Bangladesh earnings.