RAK Ceramics’ profits plunge 25%

Profits of RAK Ceramics fell 25 per cent to Tk 67 crore in 2022 even though its sales rose 8.79 per cent to Tk 745 crore that year as a gas price hike coupled with volatility in the foreign currency market drove up production costs.

Considering the profits, the UAE-based multinational ceramics company recommended 10 per cent cash dividends for its shareholders.

RAK Ceramics, Bangladesh's leading ceramics producer, informed that sales rose due to the revised and responsive business strategy taken by its management.

However, profits plunged due to an increase in gas price, significant volatility in foreign exchange rates, and disruptions to the global supply chain that pushed up raw material prices as well as freight rates, the company said in a disclosure.

In addition, disruptions to production due to inadequate pressure of supplied gas from mid-August in 2022 resulted in higher production costs compared to previous year.

Therefore, the gross profit margin reduced from 29.67 per cent to 26.43 per cent and the expected sales volume could not be achieved, it added.

The gross profit margin refers to the company's profitability compared to sales.

Stocks of RAK Ceramics remained unchanged at Tk 42.90 at the Dhaka Stock Exchange yesterday.