UAE’s RAK Ceramics posts over 100% gain on 2021 net profit, revenue stands at MAD 2.86 billion
The revised dividend policy will be “subject to factors such as business outlook, capital requirements for growth opportunities, expansion plans, optimal debt levels and healthy cash reserves in addition to regulatory approvals. “. The share price exceeded Dh3 on Monday February 7th.
With Saudi Arabia now the largest revenue generator, RAK Ceramics will take the next logical step to invest in a full-scale manufacturing base there. The plan is to acquire land for a project of its own. The acquisition of existing ceramic companies in the Kingdom was also considered.
“We supply the market with all the quota needed from our base in the United Arab Emirates, which explains the 25% increase in our Saudi sales. However, we need a plant there to continue contributing to growth,” Massad said.
“There were supply delays in the time of Covid when the borders were closed. Thereafter, our Saudi supplies never completely stopped.
The company will also increase the production capacity of its factories in the United Arab Emirates, India and Bangladesh. Reducing debt levels will also free up more capital for expansion needs.
The slowdown in project activity resulted in lower revenue for RAK Ceramics in the UAE, by 3.1% year-on-year. But that was more than offset by the 26.7% increase in sales from Saudi Arabia. The Emirati manufacturer hopes to keep the Saudi momentum at these rates this year as well.
In its other major market, India, the UAE-based company reported revenue growth of 60.9%, “supported by positive business sentiment, which translated into improved profitability, despite significantly higher fuel costs”.