RAK Properties reports 61% surge in Q1 profit

Ras Al Khaimah / Emirates Business

RAK Properties PJSC, Ras Al Khaimah’s largest property developer listed on the Abu Dhabi Stock Exchange, reported increased profits during the first three months of this year, with revenues in excess of AED115 million between the months of January to March 2017.

The reported Q1 2017 results reveal a 61 per cent increase in revenues when compared to the same period in 2016 – up from AED71,581,000 in 2016 to AED115,538,000 this year. Similarly, profits over the corresponding three-month period increased to AED39,878,000 from AED18,537,000 in 2016. To date, RAK Properties’ total assets are valued at AED 5.06 billion as of March 31, 2017, an increase on the AED 4.99 billion recorded on December 31, 2016

Commenting on the results, Managing Director and CEO Mohammed Sultan Al Qadi, said: “RAK Properties continues to go from strength to strength and our latest sales figures are testament to the confidence investors have in our developments across the UAE,” RAK Properties Managing Director and CEO Mohammed Al Qadi, said.
“Ras Al Khaimah is establishing itself as a strong proposition for investors and home owners alike, with significant demand for waterfront property. Through our own developments, we are meeting this demand and providing communities that encompass affordable luxury in an idyllic setting,” Al Qadi added.
RAK Properties has celebrated the groundbreaking on two international resorts within the landmark Mina Al Arab. The contract for enabling works for the upcoming 350 key InterContinental Ras Al Khaimah Mina Al Arab Resort was announced earlier this year, following news of progress on enabling work at the 306-key Anantara Mina Al Arab, Ras Al Khaimah.
RAK Properties has also announced further development across the mixed-use master development, including the launch of Gateway Residences, a 144-apartment complex, in addition to a 811,420m2 island, with an investment of AED 5 billion, set to be the new social and entertainment hub of Ras Al Khaimah.

RAK Ceramics’ revenues post 4% growth in Q1

Ras Al Khaimah / WAM

RAK Ceramics has registered solid growth in the first quarter of 2017 with its total revenues surging by 4 per cent to AED681.1 million.
The growth of its core businesses in the three-month period ended March 31 was mainly driven by 13 per cent jump in tile revenues besides a stable growth in sanitaryware revenues of 2.9 per cent and 12.9 per cent increase in tableware revenues.
The tiles and sanitaryware revenues were driven predominantly by the UAE market and increased sales to Saudi Arabia. Tableware sales were 40 per cent higher year-on-year (YoY) on account of the consolidation of Restofair, which took effect from January 1.

Like for like tableware revenues increased 4.3 per cent compared to Q1 2016, said the statement from RAK Ceramics.
The company reported strong quarter-on-quarter (QoQ) performance with its total revenues surging to AED681.1 million and core revenues hitting AED620.6 million.
Revenues in the UAE, the company’s largest market, rose by 10.2 per cent QoQ and 5.4 per cent YoY. This growth was driven by a revenue increase of 17.9 per cent YoY in sanitaryware and 2.2 per cent YoY in tiles.
The sales in Saudi Arabia, its other core market, surged by 85 per cent to AED51 million compared to AED27.6 million in the previous quarter. While still below Q1 2016 levels, the quarterly rebound appears to signal the beginning of a market recovery, it added.
On the Q1 results, Group CEO Abdallah Massaad, said: “Our first quarter performance came as expected. We successfully identified the UAE as a source of growth and we are pleased to see Saudi Arabia having turned a corner.”
“Our second half results should also benefit from a turnaround in sales in India and greater production from Iran. We continue to remain focused on cost efficiencies and anticipate better gross margins and lower overheads going forward, which we believe will increase profitability and shareholder value,” explained Massaad.
Driven predominantly by strong demand in the UAE and Europe, sanitaryware revenues grew by 9.6 per cent to AED122.2 million compared to AED111.5 million in Q1 2016, said the statement from RAK Ceramics.
This increase is also demonstrative of the group’s ongoing investment in sanitaryware capacity expansions, it added.
Massaad stressed that RAK Ceramics had shown positive momentum in gross margin improvements for the first quarter reporting core gross margins of 32.1 per cent, up 190bps YoY.
Tile gross margins surged by 160bps YoY to 27 per cent, the highest quarterly result for RAk Ceramics since 2014, driven by improved production efficiencies across UAE tile plants, he added