RAK Ceramics, one of the world’s biggest producers of ceramic products, reported about 23 per cent jump in its full-year 2022 net profit as revenue rose despite rising global economic challenges.
Net profit attributable to the owners of the company for the 12 months to the end of December rose to Dh302.8 million ($82.5 million), up from Dh246.5 million recorded at the end of 2021, the company said in a statement to the Abu Dhabi Securities Exchange, where its shares are traded.
Revenue for the reporting period also climbed by almost 23 per cent on an annual basis to Dh3.52 billion, the highest since 2009.
Robust growth in the company's core business as well as acquisitions and the consolidation of stakes in subsidiaries drove revenue higher.
“Despite the challenging economic environment marked by high inflation and persistent energy crisis, the company has managed to achieve remarkable results,” RAK Ceramics said in the statement.
“This is a testament to our unwavering commitment to delivering value to our stakeholders.”
Ceramics manufacturers globally are facing headwinds as supply chain challenges remain amid shortages of raw material and high energy prices. Currency volatility and inflation have hit customers amid a decelerating global economy.
However, the UAE, RAK Ceramics' core market, has bucked the global trend. Inflation in the Arab world’s second-largest economy remains relatively low as it continues to bounce back from the pandemic-driven slowdown.
The company said total assets climbed 6.3 per cent year-on-year to Dh5.42 billion as it makes progress on expansion projects in the UAE across all lines of its businesses, as well as on multiple greenfield projects in Bangladesh.
RAK Ceramics also completed its core businesses consolidation exercise after increasing its stake in RAK Porcelain to 92 per cent following a series of minority acquisitions. RAK Porcelain also acquired the final 9 per cent minority stake in its European subsidiary to fully consolidate its shareholding.
The company is solidifying its position and is “committed to leveraging on synergies to strengthen operations across all core businesses”, it said.
The company will continue to look for new acquisitions and it remains bullish about growth in the UAE and Saudi Arabia, group chief executive of RAK Ceramics Abdallah Massaad told The National in November.
“It is a good moment for us as we are doing well and we are looking to expand organically and inorganically,” he said after the company reported a 61 per cent rise in its third-quarter net income.
Founded in 1989, RAK Ceramics serves clients in more than 150 countries through its network of operational hubs in Europe, the Middle East and North Africa, Asia, North and South America, and Australia.
The company has the capacity to produce 118 million square metres of tiles, five million pieces of sanitaryware, 24 million pieces of porcelain tableware and 2.5 million pieces of faucets per year at its manufacturing plants in the UAE, India, Bangladesh and Europe.
The company said revenue from the UAE market increased almost 20 per cent annually, driven by "solid market fundamentals in 2022".
Revenue from Saudi Arabia, meanwhile, rose 9 per cent on annual basis as the company continues to expand its retail footprint in the country. In the Middle East, excluding the UAE and Saudi Arabia, it was up 22.2 per cent.
In India, revenue grew by about 3 per cent but it declined by 1.2 per cent on an annual basis in Bangladesh during the reporting period.