RAK Ceramics focuses on growth strategies

RAK Ceramics announces its first half 2022 results, growing by 20%, and the new investments planned up to the year 2025. Watch CEO Abdallah Massaad’s interview at the inaugural conference at Tecna 2022.

Following a remarkable first half 2022 performance (revenues were up 20% on H1 2021 and EBITDA grew by almost 15% in the same period), RAK Ceramics is now embarking on an ambitious business strategy. Already one of the world’s largest manufacturers of tiles, sanitaryware and tableware, the Ras-Al-Khaimah-based multinational aims to establish itself as the leading global provider of ceramics lifestyle solutions by pursuing new initiatives and investments and by leveraging its existing assets: a globally recognised brand, a wide product range and an ability to produce premium quality products at a value price point.

As announced by CEO Abdallah Massaad, speaking at the Inaugural Conference of Tecna 2022 in Rimini, the group is planning new expansion projects in Bangladesh and Saudi Arabia in the coming years, as well as continuing the upgrade of its factories in the UEA to increase both efficiency and productivity. RAK Ceramics Bangladesh is building a new 4.8 million sqm/year tile plant which is scheduled to begin operation by March 2025, as well as a 400,000 sqm/year tap plant that will become operational in June 2024. The total investment is expected to exceed €100 million. In Saudi Arabia, after signing an agreement with the Royal Commission of Jubail & Yanbu for the allocation of land in the city of Yanbu, RAK Ceramics is already working on the building project for the new tile factory.

Watch Mr. Abdallah Massaad’s speech at Tecna 2022

The June 2022 results

All three main business areas contributed to the sales growth of RAK Ceramics in the first half 2022. Tiles segment revenue increased by 11.9% year on year to AED 1.1 billion in H1 2022 (approx. €285.4 million), driven by an increase in volumes and in selling price across all markets. Sanitaryware revenue grew by 10.3% in H1 2022 to AED 301.2 million (approx. €78.2 million), driven by growth in all markets except for Saudi Arabia. Revenue in the Tableware segment increased by 70.3% year-on-year to AED 164.9 million (around €42.8 million) in H1 2022 following the post-pandemic market rebound.

Read the complete article published in Ceramic World Review 148