RAK Ceramics’ Second Quarter Financial Results Meet Management Expectations
RAK’s second quarter 2018 tile and sanitaryware revenues increased 2.7% in UAE, 17.2% in Saudi Arabia, 2.2% in India, and 6% in Europe compared to the prior year’s quarter.
RAK Ceramics PJSC recently announced its financial results for the second quarter ended June 30, 2018. The company reported steady year-on-year performance, with total revenues essentially flat at AED 719.2 million (approximately $195.8 million) and core revenues growing by 2.6% to AED 678.4 million (~ $184.7 million). RAK Ceramics’ total revenues for the quarter decreased by 0.3% compared to the 2017 second quarter due to a decrease in non-core revenues of 31.9%, reflecting the complete discontinuation of the rough grading business in line with the company’s Value Creation Plan.
Second quarter 2018 tile and sanitaryware revenues increased 2.7% in UAE, 17.2% in Saudi Arabia, 2.2% in India, and 6% in Europe compared to the prior year’s quarter. Tableware saw strong revenue growth of 25.5%, due primarily to demand in Europe and the U.S.
The business in India reportedly witnessed a gradual turnaround in the second quarter of 2018. Currently, an expansion and a green-field project at Morbi are underway, both due to begin commercial production by the end of the year. Sanitaryware revenues in India increased by 12.9% compared to the 2017 second quarter, while tile revenues increased 1.7%.
“Our performance this quarter was stable and in line with expectations,” said Abdallah Massaad, group CEO. “Tile and sanitaryware sales were strong in the UAE, Saudi Arabia, India and Europe. Our tableware business has performed well, driven by growth in the U.S. market, and the taps and faucets business has also shown growth in the UAE and Europe. Looking ahead to the remainder of the year, we are optimistic about our ability to execute on our Value Creation Plan, increase our profitability in core and value markets, drive product innovation and to optimize our production.”
According to RAK, it continued to invest in the upgrading of machines and the installation of co-gen and heat recovery systems to reduce the consumption of gas and power. Additional details are available at https://corporate.rakceramics.com.