RAK Ceramics, the world's largest ceramics maker, has blamed declining profits on lower consumer confidence.
The decline is largely a result of lower consumption specifically from European and UAE markets, but Manish Joshi, the chief financial officer of RAK Ceramics, said the company expected business to pick up due to economic growth in the Middle East and emerging markets in Asia and Africa.
The company reported a profit of Dh69.8 million (US$19m) in the third quarter, down from Dh71.6m in the same quarter last year, a statement to the Abu Dhabi Securities Exchange showed.
Mr Joshi said: "We are maintaining revenues and profits despite adverse market conditions because of our diversified market portfolio and having less dependence on the local market. At the moment, less than 16 per cent of our core revenues are derived from the UAE market and over 84 per cent of the core business is from other countries including emerging markets."
RAK Ceramics owns and operates tile and sanitary ware factories in the UAE, Bangladesh, China, India, Iran and Sudan, and has distribution arrangements for its products in more than 125 countries.
Its Indian subsidiary is expected to have its initial public offering by the end of this year, according to Khater Massaad, the company's chief executive.
Analysts agree the decline in RAK Ceramics's third-quarter results are mainly an indication of the economic climate in general and not a long-term trend.
Yasmin Ghanem, an analyst at CI Capital in Cairo, said: "While the ceramics company exports to Europe, the loss of consumer confidence should reverse in the next year and add to RAK Ceramics's profitability
"We are going to see RAK Ceramics grow quite strongly over the next coming years, expanding into other markets outside the Middle East.
"The company is well positioned to have strong growth in the next four to five years because its pricing and cost margins are better than some of the larger European tile producers."
halsayegh@thenational.ae
The biog
Prefers vegetables and fish to meat and would choose salad over pizza
Walks daily as part of regular exercise routine
France is her favourite country to visit
Has written books and manuals on women’s education, first aid and health for the family
Family: Husband, three sons and a daughter
Fathiya Nadhari's instructions to her children was to give back to the country
The children worked as young volunteers in social, education and health campaigns
Her motto is to never stop working for the country
Blackpink World Tour [Born Pink] In Cinemas
Starring: Rose, Jisoo, Jennie, Lisa
Directors: Min Geun, Oh Yoon-Dong
Rating: 3/5
Killing of Qassem Suleimani
Real estate tokenisation project
Dubai launched the pilot phase of its real estate tokenisation project last month.
The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.
Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.
What is Bitcoin?
Bitcoin is the most popular virtual currency in the world. It was created in 2009 as a new way of paying for things that would not be subject to central banks that are capable of devaluing currency. A Bitcoin itself is essentially a line of computer code. It's signed digitally when it goes from one owner to another. There are sustainability concerns around the cryptocurrency, which stem from the process of "mining" that is central to its existence.
The "miners" use computers to make complex calculations that verify transactions in Bitcoin. This uses a tremendous amount of energy via computers and server farms all over the world, which has given rise to concerns about the amount of fossil fuel-dependent electricity used to power the computers.
RESULTS
5pm: Maiden (PA) Dh80,000 1,400m, Winner SS Lamea, Saif Al Balushi (jockey), Ibrahim Al Hadhrami (trainer).
5.30pm: Wathba Stallions Cup Handicap (PA) Dh70,000 1,400m, Winner AF Makerah, Sean Kirrane, Ernst Oertel
6pm: Handicap (PA) Dh80,000 1,600m, Winner Maaly Al Reef, Brett Doyle, Abdallah Al Hammadi
6.30pm: Handicap (PA) Dh90,000 1,600m, Winner AF Momtaz, Antonio Fresu, Musabah Al Muhairi
7pm: Handicap (PA) Dh80,000 2,200m, Winner Morjanah Al Reef, Brett Doyle, Abdallah Al Hammadi
7.30pm: Handicap (TB) Dh100,000 2,200m, Winner Mudarrab, Jim Crowley, Erwan Charpy
The biog
DOB: March 13, 1987
Place of birth: Jeddah, Saudi Arabia but lived in Virginia in the US and raised in Lebanon
School: ACS in Lebanon
University: BSA in Graphic Design at the American University of Beirut
MSA in Design Entrepreneurship at the School of Visual Arts in New York City
Nationality: Lebanese
Status: Single
Favourite thing to do: I really enjoy cycling, I was a participant in Cycling for Gaza for the second time this year