Working capital remained stable, reflecting the strength of the business
RAK Ceramics recently revealed its Q1-2020 financial figures.
It undertook measures to manage and limit the impact of Covid-19 during this period. It was one of the first UAE companies to adopt social distancing, and apply working from home model to most of its administrative employees.
The company also completely shut down production in India and Bangladesh in line with the government’s guidelines as of the end of March 2020 and reduced production in the UAE.
RAK Ceramics has taken measures to manage its liquidity, reducing discretionary expenses and placing non-essential capex plans on hold.
Stable performance despite market slowdown
RAK Ceramics delivered stable revenues of AED 592.8 million that decreased marginally by 2.7% when compared to the same period in 2019, primarily due to lower sanitaryware and tableware revenue.
Reported net profit decreased by 18.1% year on year to AED 30.2 million, with a margin of 5.1% due to decrease in revenue and investments in upgraded branding and showrooms, as well as higher freight costs.
Growth in Saudi Arabia
Total revenue in Saudi Arabia increased significantly when compared to the same period in 2019, driven by an 80.8% increase in tiles revenue. The company is optimistic for long-term growth in Saudi Arabia post-Covid-19 economic recovery.
“We have also taken measures to ensure our liquidity is managed and to mitigate the closure of retail channels by launching alternative options, including a virtual reality showroom experience,” affirmed Abdallah Massaad, Group CEO, RAK Ceramics.
