RAK Ceramics’ profits plunge 25%

Despite an 8.79% increase in sales to Tk 745 crore in 2022, RAK Ceramics saw a 25% decrease in profits, totaling Tk 67 crore. This decline was attributed to a rise in gas prices and fluctuations in the foreign currency market, which led to an increase in production costs.

In light of these financial results, the multinational ceramics company suggested a 10% cash dividend for its shareholders.

RAK Ceramics, Bangladesh’s top ceramics manufacturer, announced that its sales increased as a result of a revised and adaptive business strategy implemented by its management team.

However, the company also reported a decline in profits due to a hike in gas prices, significant fluctuations in foreign exchange rates, and disruptions to the global supply chain that led to an increase in raw material prices and freight rates, as stated in a disclosure statement.

As a result of disruptions in production caused by insufficient gas pressure during mid-August 2022, production costs increased compared to the previous year. This led to a decrease in the gross profit margin from 29.67% to 26.43%, and the company was unable to reach its projected sales volume.

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The term “gross profit margin” signifies the level of profitability a company experiences in relation to its sales.

At the Dhaka Stock Exchange yesterday, the value of RAK Ceramics stocks remained constant at Tk 42.90.