RAK Ceramics reports slide in first quarter profit – The National

RAK Ceramics reports slide in first quarter profit – The National

RAK Ceramics, one of the world's biggest producers of ceramics, reported an 18 per cent drop in its first-quarter net profit as impairment losses climbed and revenue decreased as the coronavirus pandemic hit.. Net profit for the three months ending March 31 plunged to Dh30.2 million, the company said in a statement to Abu Dhabi Securities Exchange where its shares trade.. Impairment losses on trade receivables and dues from related parties rose almost five-fold to Dh6m while revenue dropped 3 per cent to Dh593m.. "The nature of our business is closely linked to the construction and hospitality sector[s], which were heavily affected by the pandemic," Abdallah Massaad, group chief executive of RAK Ceramics, said on Wednesday.. RAK Ceramics is implementing a raft of measures to mitigate the impact of Covid-19 on its business in different markets.. The company completely shut down production in India and Bangladesh and reduced its production in the UAE.. Total revenue in Saudi Arabia increased significantly when compared to the same period in 2019, driven by an 80.8 per cent increase in tiles revenue.. The company is optimistic about long-term growth in Saudi Arabia once the economic recovery gets under way, it said in the statement..