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Ras Al Khaimah: RAK Ceramics's annual general meeting yesterday approved a 20 per cent bonus share issue to its shareholders.
RAK Ceramics had earlier announced a net profit of Dh169.7 million for 2007, a 10 per cent increase from Dh153.7 million in 2006.
Dr Khater Massaad, CEO of RAK Ceramics, said the company was able to deliver a solid performance and achieve an impressive 35 per cent revenue growth in 2007, despite high energy prices and rising freight and raw material costs.
Massaad said the company's annual revenue touched Dh 2.27 billion from Dh1.68 billion in 2006. The company achieved global production of 98 million square metres of tiles and 3.3 million pieces of sanitaryware in 2007.
"The company will strive to maintain its leadership position by sustaining the growth momentum through superior performance, identifying and entering new markets and offering unmatched product quality and service. We are looking forward to good results from current investments and improving sales and marketing efforts," Massaad added.
Assets surge
According to the annual report, the total assets of the company surged to Dh4.26 billion in 2007 from Dh3.82 billion in 2006. The total cost of sales jumped from Dh1.27 billion in 2006 to Dh1.83 billion in 2007.
The company has maintained its growth momentum even in the face of abnormally rising LPG prices, which rose from $531 per tonne to $912.
This resulted in an additional expense of Dh75 million. The company is looking forward to obtaining natural gas for a minimum of nine months in 2008 to offset expensive LPG.
Another factor which contributed to increased cost of sales was the volatility in dollar-euro rates which contributed to 15 to 35 per cent increase in commodity and raw material prices and a rise in international freight costs.
New joint venture projects to be set up in 2008-09 include RAK Paints, RAK Warehouse Leasing. The company plans to take a 70 per cent stake in Acacia Hotels, which is setting up four-star hotels.
RAK Ceramics sees opportunities in the huge demand for building materials in the GCC. The company has orders for 18 million square metres of tiles and 1.4 million pieces of sanitaryware.
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