RAK Ceramics profit fell during the first half of the year to nearly Dh150 million, while revenue fell after the company refocused on its core products.
The Abu Dhabi-listed company reported a net profit of Dh149.9 million, down from Dh151 million during the first half of last year. Net profit margins increased to 9 per cent in the first six months, compared to 8.6 per cent for the corresponding period last year.
The decrease [in revenue] came because “we are exiting the non-core activities and focusing on core businesses, which from now will be tiles, sanitaryware, tableware, faucets and adhesives,” said Abdallah Massaad, the chief executive of RAK Ceramics.
He predicted that revenue would continue to fall until output capacity for core products was sufficiently increased.
Revenue from non-core businesses, which included construction and property activities, decreased by 34 per cent.
Revenue from ceramic products increased by 3.9 per cent to Dh1.41bn, accounting for 84.9 per cent of the total revenue. The new focus follows the private equity firm Samena Capital’s acquisition of a 30.5 per cent of the company from Ras Al Khaimah’s ruling family.
In April, Samena Limestone, a subsidiary of Samena Capital, acquired the stake for an estimated Dh957m.
The emirate’s Ruler, Sheikh Saud bin Saqr Al Qasimi, who is also the RAK Ceramics chairman, continues to hold 20 per cent of the company.
“We are working closely [with Samena], and as private equity players they have the mentality of growing the business and creating value, which tallies with what we want,” Mr Massaad said.
The company exports 75 per cent of its products. Its largest market is the Arabian Gulf, with Saudi Arabia as number one, followed by the United Kingdom and Germany in Europe.
“Europe is a stable market but not growing, while the Gulf is a fast-growing market, so it balances out,” Mr Massaad said.
In the second quarter, the UK market saw no growth in construction output compared with the first quarter, according to the UK’s Office for National Statistics. In Germany, construction output decreased 2.5 per cent in May over the same period in the previous year.
In Saudi Arabia, the value of projects planned or under way is worth US$1 trillion, according to Meed.
RAK Ceramics also said that it would invest $100m in increased capacity in Bangladesh and India. It is adding a bigger kiln to increase production in Bangladesh by 35 per cent in a year’s time.
In India it is weighing an IPO to fund its expansion there, Mr Massaad said last week.
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Nayanthara: Beyond The Fairy Tale
Starring: Nayanthara, Vignesh Shivan, Radhika Sarathkumar, Nagarjuna Akkineni
Director: Amith Krishnan
Rating: 3.5/5
UAE currency: the story behind the money in your pockets
The specs
Engine: Direct injection 4-cylinder 1.4-litre
Power: 150hp
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The specs
Engine: Long-range single or dual motor with 200kW or 400kW battery
Transmission: Single-speed automatic
Max touring range: 620km / 590km
Price: From Dh250,000 (estimated)
Company%20Profile
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COMPANY%20PROFILE
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COMPANY PROFILE
Name: Almnssa
Started: August 2020
Founder: Areej Selmi
Based: Gaza
Sectors: Internet, e-commerce
Investments: Grants/private funding
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The specs: 2018 Maserati Ghibli
Price, base / as tested: Dh269,000 / Dh369,000
Engine: 3.0-litre twin-turbocharged V6
Transmission: Eight-speed automatic
Power: 355hp @ 5,500rpm
Torque: 500Nm @ 4,500rpm
Fuel economy, combined: 8.9L / 100km
COMPANY PROFILE
Name: HyperSpace
Started: 2020
Founders: Alexander Heller, Rama Allen and Desi Gonzalez
Based: Dubai, UAE
Sector: Entertainment
Number of staff: 210
Investment raised: $75 million from investors including Galaxy Interactive, Riyadh Season, Sega Ventures and Apis Venture Partners
Heavily-sugared soft drinks slip through the tax net
Some popular drinks with high levels of sugar and caffeine have slipped through the fizz drink tax loophole, as they are not carbonated or classed as an energy drink.
Arizona Iced Tea with lemon is one of those beverages, with one 240 millilitre serving offering up 23 grams of sugar - about six teaspoons.
A 680ml can of Arizona Iced Tea costs just Dh6.
Most sports drinks sold in supermarkets were found to contain, on average, five teaspoons of sugar in a 500ml bottle.
COMPANY PROFILE
Founders: Alhaan Ahmed, Alyina Ahmed and Maximo Tettamanzi
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How to wear a kandura
Dos
- Wear the right fabric for the right season and occasion
- Always ask for the dress code if you don’t know
- Wear a white kandura, white ghutra / shemagh (headwear) and black shoes for work
- Wear 100 per cent cotton under the kandura as most fabrics are polyester
Don’ts
- Wear hamdania for work, always wear a ghutra and agal
- Buy a kandura only based on how it feels; ask questions about the fabric and understand what you are buying
Specs%20
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Electoral College Victory
Trump has so far secured 295 Electoral College votes, according to the Associated Press, exceeding the 270 needed to win. Only Nevada and Arizona remain to be called, and both swing states are leaning Republican. Trump swept all five remaining swing states, North Carolina, Georgia, Pennsylvania, Michigan and Wisconsin, sealing his path to victory and giving him a strong mandate.
Popular Vote Tally
The count is ongoing, but Trump currently leads with nearly 51 per cent of the popular vote to Harris’s 47.6 per cent. Trump has over 72.2 million votes, while Harris trails with approximately 67.4 million.
The specs
Engine: Dual 180kW and 300kW front and rear motors
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Transmission: Single-speed automatic
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Business Insights
- As per the document, there are six filing options, including choosing to report on a realisation basis and transitional rules for pre-tax period gains or losses.
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Countdown to Zero exhibition will show how disease can be beaten
Countdown to Zero: Defeating Disease, an international multimedia exhibition created by the American Museum of National History in collaboration with The Carter Center, will open in Abu Dhabi a month before Reaching the Last Mile.
Opening on October 15 and running until November 15, the free exhibition opens at The Galleria mall on Al Maryah Island, and has already been seen at the Jimmy Carter Presidential Library and Museum in Atlanta, the American Museum of Natural History in New York, and the London School of Hygiene and Tropical Medicine.
Squads
India (for first three ODIs) Kohli (capt), Rohit, Rahul, Pandey, Jadhav, Rahane, Dhoni, Pandya, Axar, Kuldeep, Chahal, Bumrah, Bhuvneshwar, Umesh, Shami.
Australia Smith (capt), Warner, Agar, Cartwright, Coulter-Nile, Cummins, Faulkner, Finch, Head, Maxwell, Richardson, Stoinis, Wade, Zampa.
THE SPECS
Engine: 6.75-litre twin-turbocharged V12 petrol engine
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Company%20profile
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The details
Colette
Director: Wash Westmoreland
Starring: Keira Knightley, Dominic West
Our take: 3/5
Company%20Profile
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Business Insights
- Canada and Mexico are significant energy suppliers to the US, providing the majority of oil and natural gas imports
- The introduction of tariffs could hinder the US's clean energy initiatives by raising input costs for materials like nickel
- US domestic suppliers might benefit from higher prices, but overall oil consumption is expected to decrease due to elevated costs
The specs
Engine: 2.0-litre 4-cylinder turbo hybrid
Transmission: eight-speed automatic
Power: 390bhp
Torque: 400Nm
Price: Dh340,000 ($92,579
COMPANY%20PROFILE
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