Abu Dhabi – Mubasher: Ras Al Khaimah Ceramics (RAK Ceramics) on Sunday said its profits fell 48% year-on-year in the third quarter of 2018.
The company's profits amounted to AED 38.4 million down from AED 74.3 million in Q3-17.
As for the nine months to September, RAK Ceramics profits dropped 40% to AED 139.3 million from AED 230.3 million in the corresponding period of 2017, it said in a filing to the Abu Dhabi Securities Exchange (ADX).
RAK Ceramics attributed the nine-month profit fall to higher administrative and general expenses by 10% to AED 172.7 million from AED 157.1 million in the same period of 2017 as well as higher sales and distribution costs of 11% year-on-year to AED 338.5 million versus AED 305.8 million in the January-to-September period of 2017.
Commenting on the results, RAK Ceramics Group CEO Abdallah Massaad said that this company's Q3-18 performance was "stable, despite market slowdown in the summer months and increased costs."
As RAK Ceramics looks to optimise its business operations, it "will continue to drive innovation in our product portfolio and focus on rolling out our new branding supported by a shop in shop concept in our showrooms," the top official added.
RAK Ceramics also revealed that production trials at its facility in Morbi, Gujarat in India commenced in October and that the greenfield project was moving according to plan. The India project is set to begin commercial production in Q1-19.
"Looking ahead to the remainder of 2018, RAK Ceramics' priorities are to increase market share in the UAE, India and Bangladesh, and improve profitability in Europe, as we remain focused on cost reduction and operational efficiencies,” Massaad concluded.
The Abu Dhabi-listed ceramics firm previously posted a 35% year-on-year drop in net profit to AED 100.8 million in the first half of 2018 from AED 156.8 million.
