RAK Ceramics, one of the world’s largest ceramic manufacturers, recently announced its financial results: the company posted a record performance for the full year 2022 with a total revenue increase of 22.9 percent to AED 3.52 billion and a 19.8 percent increase in net profit to AED 340.1 million over 2021. Total gross profit margin remained stable at 36.1% despite the difficulties of the current macroeconomic conditions. Total EBITDA increased 15.1 percent to AED 577.2 million in fiscal 2022. The Board of Directors proposed a dividend distribution of 10 fils per share (AED 99.4 million) for the second half of 2022.
Commenting on the results, Abdallah Massaad, CEO of RAK Ceramics Group said:
“I am pleased to share our company’s performance for the year 2022. Despite the current macroeconomic conditions characterized by high inflation and a persistent energy crisis, we have managed to achieve remarkable results. Our total revenue increased by 22.9 percent year-on-year to the highest result since 2009, followed by strong growth in our core business in ceramics, sanitary ware and tableware in addition to growth in faucets in the wake of the KLUDI consolidation. This is a testament to our ongoing commitment to deliver value to our stakeholders.
Despite the difficult economic environment, we were able to maintain our gross profit margin level, mainly due to our improved production efficiency and optimized utilization in 2022. Growth has been hampered by additional costs related to Saudi customs duties, higher production costs, and energy challenges. However, we are working to overcome these challenges and are already seeing hints of correction in some cases.
Operationally, we continued to make progress on our expansive projects in the UAE across all lines of business and to advance on multiple “Greenfield” fronts, including Bangladesh and Saudi Arabia. Strategically, we have finalized our core business consolidation exercise: our value creation plan for Kludi is well underway, and we are closely monitoring its progress; and we have achieved a 92 percent stake in RAK Porcelain following a series of minority acquisitions initiated in 2022. We have consolidated our group position and are working to leverage synergies to strengthen operations in all core operating businesses.
Today, as we approach the close of Chapter 2022, we are proud of the progress we have achieved and our growth, and we remain steadfast in our commitment to deliver value to our stakeholders. We are closely monitoring the economic environment and remain focused on executing our growth strategy.”
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