RAK Ceramics' first quarter net profit more than doubled as revenue for one of the world's biggest ceramics manufacturers surpassed pre-pandemic levels to touch a five-year high, boosted by a surge in sales in Saudi Arabia.
Net profit to shareholders increased to Dh60.7 million ($16.5m) in the three months to March 31, up from Dh25.7m in the same period last year. Revenue for the reporting period grew 22 per cent to Dh722.8m, which was its highest level for the quarter since 2016, driven by "growth in all core markets".
"The company has returned to a state of steady growth," a directors' report filed to the Abu Dhabi Securities Exchange, where its shares are traded, said.
Total gross profit margin for the first quarter of the year reached an all-time high of 35 per cent driven by an increase in revenue, an improvement in efficiencies and the optimisation of production lines.
"During the pandemic, we had to optimise our production ... [but] the moment demand came back, we were ready," Abdallah Massaad, group chief executive of RAK Ceramics, told The National on Monday.
"We did not stop and we invested in technology ... where it paid us. From an efficiency perspective, it also helped us a lot."
Despite an improving global economic outlook this year, it is still difficult to predict how demand will shape up, given the world is still dealing with the pandemic.
"Covid-19 is not yet gone so we are cautiously optimistic. We see growth and we have grown vis-à-vis first quarter [of 2020] which was not really impacted by Covid," Mr Massaad said. "From a macro [economic] perspective we will see how things improve."
The company is also closely watching inflation in different markets, which is not a worry at the moment, he added.
RAK Ceramics manufactures ceramic tiles, kitchenware and sanitaryware from production bases in the UAE, India and Bangladesh.
The company reported a 78.5 per cent increase in sales in Saudi Arabia, which last year introduced anti-dumping duties on ceramic tile imports from India and China.
"Capitalising on this demand, the company invested in differentiated tiles and new showrooms, developing significant brand equity in the market. RAK Ceramics is now the go-to provider of premium ceramic products in the kingdom," the directors' report said.
In the UAE, production levels hit a five-year high as operations were uninterrupted despite the impact of Covid-19, the company said.
Revenue in India was up 67 per cent after the company "implemented several initiatives to streamline the business", including the adoption of an improved sales strategy.
However, surging Covid-19 infections in India and Bangladesh are expected to affect the company's revenue. India is currently dealing with a brutal second wave of the pandemic, with the daily infection rate climbing above 400,000 and fatalities topping 4,000, forcing some Indian states to impose lockdowns.
RAK Ceramics has continued its operations in Bangladesh but has shut one of its three production units in India, Mr Massaad said.
Even if the company has to close all three of its Indian facilities, the impact on revenue will not be significant since India's production is for the local market, he said.
"The health and safety of our employees remain a priority as we manage our businesses in that market," the company said.
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UAE v Zimbabwe A, 50 over series
Fixtures
Thursday, Nov 9 - 9.30am, ICC Academy, Dubai
Saturday, Nov 11 – 9.30am, ICC Academy, Dubai
Monday, Nov 13 – 2pm, Dubai International Stadium
Thursday, Nov 16 – 2pm, ICC Academy, Dubai
Saturday, Nov 18 – 9.30am, ICC Academy, Dubai
MATCH INFO
Uefa Champions League final:
Who: Real Madrid v Liverpool
Where: NSC Olimpiyskiy Stadium, Kiev, Ukraine
When: Saturday, May 26, 10.45pm (UAE)
TV: Match on BeIN Sports
The burning issue
The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE.
Read part four: an affection for classic cars lives on
Read part three: the age of the electric vehicle begins
Read part one: how cars came to the UAE
Ruwais timeline
1971 Abu Dhabi National Oil Company established
1980 Ruwais Housing Complex built, located 10 kilometres away from industrial plants
1982 120,000 bpd capacity Ruwais refinery complex officially inaugurated by the founder of the UAE Sheikh Zayed
1984 Second phase of Ruwais Housing Complex built. Today the 7,000-unit complex houses some 24,000 people.
1985 The refinery is expanded with the commissioning of a 27,000 b/d hydro cracker complex
2009 Plans announced to build $1.2 billion fertilizer plant in Ruwais, producing urea
2010 Adnoc awards $10bn contracts for expansion of Ruwais refinery, to double capacity from 415,000 bpd
2014 Ruwais 261-outlet shopping mall opens
2014 Production starts at newly expanded Ruwais refinery, providing jet fuel and diesel and allowing the UAE to be self-sufficient for petrol supplies
2014 Etihad Rail begins transportation of sulphur from Shah and Habshan to Ruwais for export
2017 Aldar Academies to operate Adnoc’s schools including in Ruwais from September. Eight schools operate in total within the housing complex.
2018 Adnoc announces plans to invest $3.1 billion on upgrading its Ruwais refinery
2018 NMC Healthcare selected to manage operations of Ruwais Hospital
2018 Adnoc announces new downstream strategy at event in Abu Dhabi on May 13
Source: The National
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Engine: 3.0-litre six-cylinder turbo
Power: 398hp from 5,250rpm
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Price: From Dh330,000 (estimate)
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Results
Oman beat UAE by five wickets
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UAE beat Namibia by eight wickets
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Saturday January 11 - UAE v Oman
Sunday January 12 – Oman v Namibia
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JOURNALISM
Public Service
Anchorage Daily News in collaboration with ProPublica
Breaking News Reporting
Staff of The Courier-Journal, Louisville, Ky.
Investigative Reporting
Brian M. Rosenthal of The New York Times
Explanatory Reporting
Staff of The Washington Post
Local Reporting
Staff of The Baltimore Sun
National Reporting
T. Christian Miller, Megan Rose and Robert Faturechi of ProPublica
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Dominic Gates, Steve Miletich, Mike Baker and Lewis Kamb of The Seattle Times
International Reporting
Staff of The New York Times
Feature Writing
Ben Taub of The New Yorker
Commentary
Nikole Hannah-Jones of The New York Times
Criticism
Christopher Knight of the Los Angeles Times
Editorial Writing
Jeffery Gerritt of the Palestine (Tx.) Herald-Press
Editorial Cartooning
Barry Blitt, contributor, The New Yorker
Breaking News Photography
Photography Staff of Reuters
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Channi Anand, Mukhtar Khan and Dar Yasin of the Associated Press
Audio Reporting
Staff of This American Life with Molly O’Toole of the Los Angeles Times and Emily Green, freelancer, Vice News for “The Out Crowd”
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"A Strange Loop" by Michael R. Jackson
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"Sweet Taste of Liberty: A True Story of Slavery and Restitution in America" by W. Caleb McDaniel (Oxford University Press)
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"Sontag: Her Life and Work" by Benjamin Moser (Ecco/HarperCollins)
Poetry
"The Tradition" by Jericho Brown (Copper Canyon Press)
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"The Undying: Pain, Vulnerability, Mortality, Medicine, Art, Time, Dreams, Data, Exhaustion, Cancer, and Care" by Anne Boyer (Farrar, Straus and Giroux)
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"The Central Park Five" by Anthony Davis, premiered by Long Beach Opera on June 15, 2019
Special Citation
Ida B. Wells
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WHEN TO GO:
September to November or March to May; this is when visitors are most likely to see what they’ve come for.
WHERE TO STAY:
Meghauli Serai, A Taj Safari - Chitwan National Park resort (tajhotels.com) is a one-hour drive from Bharatpur Airport with stays costing from Dh1,396 per night, including taxes and breakfast. Return airport transfers cost from Dh661.
HOW TO GET THERE:
Etihad Airways regularly flies from Abu Dhabi to Kathmandu from around Dh1,500 per person return, including taxes. Buddha Air (buddhaair.com) and Yeti Airlines (yetiairlines.com) fly from Kathmandu to Bharatpur several times a day from about Dh660 return and the flight takes just 20 minutes. Driving is possible but the roads are hilly which means it will take you five or six hours to travel 148 kilometres.
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- Flexible work arrangements
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The top three teams progress to the Asia Qualifier
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1 UAE 5 5 0 10
2 Qatar 5 4 1 8
3 Saudi 5 3 2 6
4 Kuwait 5 2 3 4
5 Bahrain 5 1 4 2
6 Maldives 5 0 5 0
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