RAK Ceramics reveals 8.7% YoY drop in revenues to $639.8mn in FY 2020 – MEP MiddleEast

RAK Ceramics reveals 8.7% YoY drop in revenues to $639.8mn in FY 2020 – MEP MiddleEast

Abu Dhabi-based RAK Ceramics PJSC, which is one of the largest ceramics' brands in the world, has reported an 8.7% year-on-year (YoY) drop in revenues to $639.8mn (AED2.35bn), primarily due to a decrease in revenue in Q2 2020 caused by COVID-19 lockdowns.

Excluding Q2 2020, the company's revenue increased by 1% to $528.17mn (AED1.94bn), noting stable FY 2020 performance and rebounds across international operations.

Performance started well in Q1 2020, but was negatively impacted in Q2 2020 due to the COVID-19 pandemic lockdowns across all of the company's core markets.

Markets recovered to pre-COVID-19 levels in Q3 2020 in both tiles and sanitary ware segments. However, tableware performance continued to suffer due to the second wave of COVID-19 lockdowns and hotel closures.

In Saudi Arabia, revenue increased by 57.9% YoY, due to the introduction of differentiated tile sizes; a focus on retail and wholesale sales; as well as the imposition of anti-dumping duties. The firm sees a strong demand in Saudi Arabia for its premium products.

In Europe, revenue increased by 2.7% year on year, driven by growth in the sanitary ware and tiles market. In the Middle East (excluding UAE and KSA), revenue increased by 12% year on year.

Total gross profit margin