RAK Ceramics, one of the largest ceramics brands in the world, has surpassed pre-pandemic levels of operation, according to a statement from the company on Monday.
The ceramics giant has recorded its strongest start to the year since 2016, with first quarter revenue increasing 21.9 percent year-on-year to AED722.8 million (around $2m). Net debt decreased by AED87.8m to AED1.14 billion.
“Our production levels are at the highest they have been since 2016, on the back of increased demand across our key markets. We will capitalise on this demand by continuing to build our brand equity and positioning RAK Ceramics as a global provider of premium ceramic lifestyle solutions,” said Abdallah Massaad, Group CEO, RAK Ceramics.
Q1 2021 revenue grew by 78.5 percent in Saudi Arabia, 2.1 percent in the UAE, 67.0 percent in India, 18.9 percent in Bangladesh, and 22.7 percent in Europe when compared to the same period in 2020, driven by improved economic activity.
“Revenue continues to recover across all markets; however, we expect revenue to be impacted by the second wave of the Covid-19 crisis in India and Bangladesh. The health and safety of our employees will remain a priority as we manage our business in that market,” he said.
Abdallah Massaad, Group CEO, RAK Ceramics
In India, where cases have topped 22m as a second wave surges, RAK Ceramics said that prior to the outbreak improved economic activity and positive business sentiment in the real estate sector led to increased demand and steady growth in revenue.
According to the statement, production hit a five-year high due to increased demand from Saudi Arabia.
“The imposition of anti-dumping duties on tiles from India and China in the kingdom initially led to an increase in demand for RAK Ceramics’ products. 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 statement read.
“Looking ahead for the remainder of 2021, our priority will be to invest in brand equity, grow our business in Saudi Arabia and protect our market share in the UAE and Bangladesh,” added Massaad.
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