Published on : Tuesday, March 18, 2014
RAK Ceramics has announced that its 2013 year-end profits reached AED 272, million, a figure that represents a 22 per cent rise (AED 48.3 million) over its net profits of AED224.0 million for 2012. The double digit percentage increase from the world’s largest ceramics manufacturer corresponds with a reduction in its debt over the last twelve months of 10 per cent (AED 149 million to AED 1,325 million) and a jump in share prices to three times their value.
“Our final figures for 2013 represent one of our strongest years of performance, with our percentage profit margin being more than double of 2012’s nine percent net profit increase,” said Mr. Abdallah Massaad, CEO of RAK Ceramics. “A large proportion of our success we can attribute to H.H. Sheikh Mohammed Bin Saud Al Qassimi, Crown Prince of Ras Al Khaimah and the Chairman of RAK Ceramics, for his wise direction. This strong financial results lays the foundation for more growth, greater product line offerings and expansion into new markets. We shall not rest on our laurels but will continue with our aggressive yet sustainable approach of expanding our business in different market segments,” he added.
The profits to the owners increased from AED223.1 million in 2012 to AED282.4million in 2013 marking a 27% increase. The Company’s Board of directors have recommended 25% cash dividend to the shareholders following strong financial results while last year the shareholders received 20% cash dividend.
RAK Ceramics’ total revenue increased by 11 per cent for the year ending 2013, up by AED 347 million to 3, 515 AED million. The company’s ceramic product ranges contributed to 81% of RAK Ceramics revenue. The organisation’s Market Capital increased by AED 1,523.5 million to AED 2,333.6 million.
The end-of-year figures for the world’s largest ceramics manufacturing company, which were delivered to the Abu Dhabi Stock Exchange, complemented its remarkable share price rise increase of 188% from AED 1.09 to AED 3.14 per share as on 31st December 2013. The additional news that shares are currently each worth AED 3.86 (at the time of writing) has further buoyed optimism in the company.
In addition to the stewardship of H.H. Sheikh Mohammed Bin Saud Al Qassimi and the generally improving economic conditions, RAK Ceramics say that optimisation of its resources across its overseas operations has contributed to the company’s profitability, which will be boosted further by the company increasing its investments in capacity increase in India and Bangladesh. The company has been proactive in expanding into new export markets and has capitalised on the dynamic economic outlook by introducing innovative product lines and customised offerings. It has also taken delivery of new techonology and state-of-art machineries at its UAE production units in the last couple of months.
Tags: H.H. Sheikh Mohammed Bin Saud Al Qassimi, Mr. Abdallah Massaad, RAK Ceramics
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