RAK Ceramics Announces Q1 2024 Financial Results

Ras Al Khaimah, United Arab Emirates, 10th May 2024: RAK Ceramics PJSC (Ticker: RAKCEC: Abu Dhabi), one of the largest ceramics lifestyle solutions providers in the world, announced today its financial results for the quarter ended 31st March 2024.

Q1 2024 Financial Highlights 

• Total revenue decreased 11.4% YoY to AED 781.6m in Q1 2024, predominantly due to challenging market situation and lower sales in Tiles, Sanitaryware and Tableware segment whereas Faucets revenue increased 4.7% YoY.
• Q1 2024, gross profit margin increased 70bps YoY at 39.3% due to operational efficiencies and lower gas price in UAE.  
• EBITDA decreased to AED 151.1m in Q1 2024, compared with AED 157.1m in the same period last year. EBITDA margins have improved to 19.3% compared to 17.8% in the comparable period last year.
• Net profit after tax decreased to AED 62.9 million, compared to AED 80.1 million in Q1 2023. The impact of 9% UAE Corporate Tax is AED 8.0 million for Q1 2024. Net profit margin is 8.0%, down from 9.1% in Q1 2023. Net profit after minority interest decreased to AED 57.6 million, compared to AED 73.4 million last year, representing a margin of 7.4% compared to 8.3% last year.
• Net debt decreased AED 54.3m in March 2024 at 1.37bn compared to Dec 23.
• Net debt to EBITDA decreased from 2.20x in Dec 23 to 2.13x in March 2024.

Income Statement Highlights 

• Tiles revenue saw a year-on-year decline of 14.8% to AED 443.6 million, attributed primarily to lower volumes in Saudi Arabia and Europe. The logistics challenges triggered from the Red Sea crisis have impacted business in all export markets. Despite these challenges, we have been able to mitigate any major impact to the gross margins.  
• Sanitaryware revenue experienced a notable 12.7% year-on-year decline, mainly due to significant challenges faced in key markets such as Italy and the UK as Europe continues to struggle with recessionary pressures and inflationary trends impacting consumer spending. Additionally, the ongoing crisis in the Red Sea has led to a substantial rise in shipping costs and prolonged delivery timelines.
• Tableware Division registered a slowdown in revenue at AED 90 million on account of decreased hotel projects and spending due to ongoing regional conflicts. Despite a reduction in sales volume and overall revenue, Tableware segment registered a gross margins of 53.9%, a year-on-year improvement of 3.6%.
• Faucets revenue witnessed a 4.7% year-on-year increase, reaching AED 116.9 million mainly resulting from the continued efforts to enhance synergies. The gross margins also improved to 31.1%, thus registering a year-on-year growth of 4.5% due to cost efficiency and shifting production capabilities in UAE. 

Read the full report from here