Tiles

RAK Ceramics confident of a post-pandemic recovery

16/10/2020

The recovery started in June, as borders reopened and economies restarted. Strong increase of orders from Saudi Arabia. New marketing tools and product innovation are supporting growth.

The recovery started in June, as borders reopened and economies restarted. Strong increase of orders from Saudi Arabia. New marketing tools and product innovation are supporting growth.

RAK Ceramics’ first-half 2020 results were only partially affected by the Covid-19 pandemic. The UAE-based ceramic giant, which has more than 20 plants spread across the UAE, India and Bangladesh where it produces yearly over 100 million sqm tiles, 5 million pieces of sanitaryware and 24 million of tableware, saw the parent company’s sales remain substantially stable in the first quarter of the year. But since the end of March it has had to cope with the closure of production plants and the prolonged lockdown imposed by local governments in India and Bangladesh, as well as the closure of the borders between countries in the GCC area.

“It would be an understatement to say that the first half of 2020 has been a challenging environment,” admits RAK Ceramics’ CEO Abdallah Massaad. “Our second quarter performance, especially in May, was significantly impacted by the Covid-19 pandemic in strategic markets such as India, Bangladesh and the Gulf region. Despite this, we have begun to see signs of recovery as borders reopen and economies restart.”

Despite the severe impact of the pandemic, the group has shown great resilience and has come through the most difficult period while expecting to see a stronger recovery over the coming months.

Although we expect this situation to impact our performance in the next few months, we are confident that our strong foundations and sound business model will enable us to face this unprecedented challenge and emerge as a stronger organisation – says Massaad. “We are working hard to not only protect but strengthen our business”.

Moving towards the end of the year, Rak Ceramics remain focused on running an efficient and profitable business, protecting its growth in the UAE, India, and Bangladesh and progressing its growth plans in Saudi Arabia. The group will also look to diversify and improve profitability in key export markets and is also focused on implementing measures to limit the impact of Covid-19 on its tableware business, which is heavily dependent upon the airline and hospitality industries. “The demand for tableware and building materials is gradually increasing and a full recovery will without a doubt happen when the pandemic ends”, confirms Massaad.

 

Read the complete interview with Abdallah Massaad and Leonardo De Muro (VP Int. Business Development & Marketing) on Ceramic World Review n. 138.

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