UAE: RAK Ceramics unveils decline in H1-24 financials; dividends proposed

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RAK Ceramics generated AED 113.91 million in net profit during the first half (H1) of 2024, marking an annual drop of 26.60% from AED 155.19 million.

The revenues decreased by 11.20% year-on-year (YoY) to AED 1.55 billion in H1-24 from AED 1.75 billion, according to the consolidated financial results.

Basic and diluted earnings per share (EPS) stood at AED 0.11 as of 30 June 2024, down from AED 0.14 in H1-23.

The total assets of RAK Ceramics hit AED 5.26 billion in H1-24, versus AED 5.35 billion as of 31 December 2023.

Income Results for Q2

In the second quarter (Q2) of 2024, the profits shrank by 32.10% to AED 51.08 million from AED 75.09 million a year earlier, while the revenues fell by 10.90% to AED 777.02 million from AED 871.98 million.

The basic and diluted EPS reached AED 0.05 in Q2-24, compared to AED 0.07 a year earlier in Q2-23.

Dividends

The board members recommended an interim dividend distribution of 10 fils per share, equivalent to AED 99.40 million, for H1-24.

Abdallah Massaad, Group CEO of RAK Ceramics said: “This quarter demonstrated continued headwinds across businesses, driven by geopolitical tensions, supply chain disruption, and economic slowdown in key regions.”

He noted: “There has been a continued suppression of consumer spending in key markets driven by high interest rates, inflationary pressures and liquidity crunch. Despite these challenges, we remain committed to further investment in our brand and the protection of margins.”

As of 31 March 2024, RAK Ceramics posted 21.50% lower net profits at AED 62.90 million, compared to AED 80.10 million in Q1-23.