By Staff writer
Company says slowdown in construction activity in Gulf region hits revenue, profit in second quarter
UAE-based RAK Ceramics has announced a slump in net profit for the second quarter of 2016 amid a slowdown in construction activity in the Gulf region.
The hi-tech manufacturer of lifestyle ceramics solutions said in a statement that overall revenue decreased by 5.9 percent to AED757 million while net profit fell by 24.1 percent to AED65.3 million compared to Q2 last year.
"Despite a slowdown in construction activity in the GCC and the impact of geopolitical uncertainty in some of the regional export markets, RAK Ceramics continued to successfully deliver on its long term value creation plan in the first half of 2016," the company said.
It said integrating its European distribution alongside continued expansions in Bangladesh and the UAE were among the main initiatives in the quarter.
During the period, RAK Ceramics said it performed a series of restructuring activities across Asia and Europe. In India, a new CEO was appointed and over the coming months will be building a team to strengthen Indian operations.
In Europe, overall sales increased by 11.1 percent compared to Q1, showing positive impact of control on improving operations, the company added.
Abdallah Massaad, RAK Ceramics' Group CEO, said: "We are focused as a group to strengthen the company's global presence by carrying out strategic global initiatives despite the ongoing challenges in our region. There are a number of encouraging signs that will support RAK Ceramics' growth and we have an ambitious plan for the group's future development."