RAK Ceramics announces Q3 2017 financial results

RAK Ceramics today announced its results for the third quarter ended 30th September 2017. Core revenues increased by 14.1 percent year on year, YoY, to AED643.6 million, driven by strong growth in the UAE, Saudi Arabia, India and Bangladesh.

Total revenue grew to AED705.2m, an increase of 9.2 percent compared to Q3 2016. Core revenue contribution represented an all-time high of 92 percent of total revenues as a result of the continued implementation on its Value Creation Plan. Non-core revenue declined by 24 percent YoY which is in-line with the company’s strategy to divest non-core operations.

Reported net profit grew to AED84.7m, which represents a strong increase of 365 percent YoY and a net profit margin of 12.0 percent. For the first 9 months in 2017, reported net profit reached AED262.3m, an increase of 76 percent compared to the same period last year.

Like for like net profit (excluding extraordinary net gain and provisions) grew to AED87.0million, an increase of 117 percent YoY and 2.2 percent QoQ.

Despite a challenging macro and political landscape in the MENA region, revenues in the UAE continued to grow by 17.7 percent YoY, led by strong demand and robust project sales across the company’s largest market.

Saudi Arabia continued its recovery trend with a strong performance in Q3 2017. Tiles and sanitaryware revenues increased by 50 percent YoY at AED 65.0 million and QoQ revenues remained stable.

Commenting on the announcement, Abdallah Massaad, Group CEO, RAK Ceramics, 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 further profitability in Saudi Arabia.

As a result of our strategy to exit non-core and non performing businesses operations we have lighten the balance sheet, increased margins and enhanced returns for our shareholders."