UAE-based RAK Ceramics reported a strong performance from its business in Saudi Arabia for the fiscal year (FY) 2019 as revenues increased 9.1% year-on-year (YoY) to AED 271.9 million (SAR 277.6 million), its CEO Abdallah Massaad said in a statement.
“Saudi Arabia has demonstrated strong performance in revenue growth, as it increased due to a rise in the wholesale business in the Kingdom,” Massaad added.
The projects segment in Saudi Arabia showed stability and tiles revenue grew by 6.9% to AED 248.7 million (SAR 253.9 million) and sanitary ware revenue grew by 41.6% to AED 23.2 million (SAR 23.6 million) in FY2019.
“Saudi Arabia has been a strong market for us predominantly in tiles, where we witnessed a substantial growth in Q4 2019, which also reflected positively on the YoY growth,” Massaad noted.
He also highlighted the company’s priorities for 2020; including further growing the market in Saudi Arabia and maintaining the market shares in the UAE, Bangladesh and India.
The ceramics manufacturer reported a net profit of AED 205.2 million (SAR 209.5 million) for FY2019 and an increase in total gross profit margins of 33.2%, as a result of the continued focus on product differentiation, production optimization and improved operational efficiencies.
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