RAK Ceramics looks to expand in Saudi Arabia

RAK Ceramics reports a strong growth of revenues and margins in 2021. The group announces new investments in its factories in the UAE, India and Bangladesh, as well as the forthcoming expansion project in Saudi Arabia.

The 2021 results announced by RAK Ceramics on 7 February demonstrate that the Ras-al-Khaimah-based ceramics group has fully capitalised on the gradual return to normality. After four consecutive quarters of revenue growth, the Emirati multinational’s annual revenue reached AED 2.86 billion (€687.5 million at the 31/12/2021 exchange rate), up 21.8% on 2020. Total gross profit margin for 2021 reached an all-time high of 36.2%, total EBITDA increased by 32.7% to AED 501.3 million (more than €120 million) and net profit grew by 102.5% to AED 298.1 million (€72 million), an increase of 102.5% on 2020 and 45.3% on 2019.

All three divisions contributed to the group’s growth: tiles revenue rose by 21.3% year-on-year to AED 1.95 billion (€468.7 million); sanitaryware revenue grew by 17.5% year-on-year driven by all markets except Saudi Arabia; tableware revenue improved by 73% year-on-year after being badly hit by the pandemic in 2020 due to its strong presence in the food service and air transport segments.

All geographical markets recorded double-digit sales growth, the only exception being the UAE domestic market where the slowdown in the project segment led to a decline in tile sales and a 3.1% fall in overall revenues.

In India and Bangladesh, where RAK Ceramics has its own facilities, the group reported revenue growth of 60.9% and 30% respectively. In Europe, a larger customer base enabled the group to increase its revenue by 17% year-on-year despite a decline in the final quarter of the year due to higher shipping freight rates caused by the global shortage in shipping containers. Revenue increased by 48% in the Middle East, with the exception of UAE and Saudi Arabia.

And it is in Saudi Arabia – where sales continued to rise, closing the year at +26.7% – that RAK Ceramics is focusing its attention with a view to a forthcoming expansion project abroad.

Read the interview with RAK Ceramics’CEO Abdallah Massaad