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INDUSTRIAL | Construction / General Building Materials

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About RAK Ceramics

RAK Ceramics produces wall and floor ceramic and porcelain tiles for interiors and exteriors. The company is based in Ras Al Khaimah, United Arab Emirates.

RAK Ceramics Headquarter Location

Ras Al Khaimah,

United Arab Emirates

Latest RAK Ceramics News

R A K Ceramics P J S C : 2021 Financial Results – Q2 English

Aug 4, 2021

08/04/2021 | 02:16am EDT Message : 30 June 2021 Condensed consolidated interim financial information 30 June 2021 Table of contents Section B: Condensed Consolidated Interim Financial Information. Report of the Board of Directors On financial performance during the six month period ending 30 June 2021 03 August 2021 Dear Members, It is our pleasure to present the business & operations report for the six month period ending 30 June 2021, along with the consolidated interim financial information for the Group as on 30 June 2021. Snapshots: Total revenue in Q2 2021 increased by 70.4% year on year to AED 700.8 million Q2 2021 reported net profit stands at AED 94.9 million, compared to a loss of AED -19.8 million in Q2 2020 Total gross profit margin reached an all-time high in Q2 2021 increasing by 9.6% year on year to 38.1%. Q2 2021 total EBITDA is AED 129.9 million, compared to AED 40.5 million in Q2 2020 Net debt decreased by AED 125 million in Q2 2021 to AED 1.02 billion, and net debt to EBITDA ratio decreased to 2.04x The board proposed the distribution of a semi-annual dividend amounting to 10 fils per share for H1 2021, subject to regulatory and statutory approvals Q2 2021 performance reflects strong growth trajectory Operations across all of RAK Ceramics' core markets continued to improve, leading to a revenue increase of 70.4% in Q2 2021 to AED 700.8 million when compared to Q2 2020. Total revenue for Q2 2021 surpassed pre-pandemic levels, increasing by 5% when compared to Q2 2019 driven by growth in all core markets. Q2 2021 reported net profit stands at AED 94.9 million after considering a one-time net gain from sale of china assets and after writing off excess rent from a leased hotel. Q2 2021 reported net profit is 29.3% higher than pre-pandemic levels in Q2 2019, indicating steady growth of the business. Operational efficiencies and increased revenue led to higher cash profits, enabling RAK Ceramics to make a significant reduction in net debt during the period. In addition, the Board has proposed a dividend of 10 fils per share for H1 2021. The dividend will be paid subject to regulatory and statutory approvals. Operational efficiencies yield results leading to an all-time high In Q2 2021 total gross profit margin reached an all-time high, increasing by +960bps year on year to 38.1% and by +310bps quarter on quarter due to improved efficiencies and reduction in costs across all production plants. In 2020, gross profit margin was impacted due to COVID-19 lockdowns. Revenue growth in key markets Q2 2021 revenue grew by 114.2% in Saudi Arabia, 142.6% in India, 214% in Bangladesh, 75.5% in Europe and 3.9% in the UAE, when compared to the same period in 2020, when lockdowns impacted operations. In Saudi Arabia, RAK Ceramics has established itself as a premium provider of ceramic products. The Kingdom is now a key market for RAK Ceramics and will continue to play a role in the company's long-term growth strategy. In India and Bangladesh, the second wave of COVID-19 induced lockdowns restricted the movement of goods and subsequently impacted revenue growth. In Europe, the business continued to grow driven by revenue from the UK and Central Europe, supported by ongoing cost control measures. In the UAE, production reached its highest level in 5 years due to increased demand from Saudi Arabia. The company continued to implement operational efficiencies in its UAE production plants, which led to all-time high gross profit margin. Early signs of recovery in the tableware business Revenue from the tableware business increased by 160.2% year on year, reflecting early signs of recovery. In 2020, the tableware business was impacted due to decreased demand from the airline and hospitality sector, which have now begun to recover. Sale of assets in China RAK Ceramics shut down the production facility in China in 2015. In Q2 2021, the Company sold the remaining assets in China, generating a gain of AED 50.1 million. Financial highlights for the six month period ending 30 June 2021 Particulars CSR activities, exhibitions, sponsorships and awards While the exhibitions are on hold worldwide owing to the pandemic, we welcomed to our head-quarter, the first delegation from Israel in the history of the UAE, headed by the Ambassador and the Consul General and the Estonian delegation on occasion of the Estonia-RAK digital technology cooperation 2021. Sponsorship of banner campaign in European football leagues - La Liga (Spain), Premier League (UK), Serie A (Italy) where in all 11 matches were broadcasted in the UAE & UK. RAK Ceramics Marketing delegation met the Italian Minister of Foreign Affairs in Dubai on the occasion of the official presentation of the Italian Pavilion at the Expo 2020 where RAK Ceramics is a supporter- sponsor of the Italian pavilion. the Company won Gold Winners SAP Quality Award - MENA 2020. Intense TV & social media visibility & the influencer campaigns in the UAE This is an excerpt of the original content. To continue reading it, access the original document here . Attachments

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