RAK Ceramics incurs loss in 2024

RAK Ceramics (Bangladesh) experienced a 15% decline in its revenue during the last year, as it failed to fully utilise its production capacity due to disrupted gas supply as well as political regime change, according to the company's financial statements.

The UAE-based ceramics manufacturer said lower gas supply significantly impacted its production, leading to a loss of Tk2.73 crore during 2024.

After a board of directors meeting held yesterday, the company revealed its yearly financial statement and declared a dividend to its shareholders.

According to the statement, its sales declined to Tk667 crore, which is lower than Tk782 crore in the previous year.

At the end of the last year, its loss per share stood at Tk0.06.

Despite incurring losses, its board recommended a 10% cash dividend for the last year. To approve the dividend and audited financial statement, it will conduct the annual general meeting scheduled on 22 March and the record date on 17 February.

In an explanation regarding the financials, the company said that sales decreased due to a demand-supply gap because of underutilisation of the plant's capacity caused by interrupted gas supply from the national grid.

"Additionally, production and sales were significantly impacted due to unprecedented political disruption," it read.

It added, "As a result of the low production and sales and as fixed costs had to be paid for full capacity, regardless of utilisation, the gross profit margin dropped from 25% to 17%, and net profit decreased by 104% due to the decline in gross profit as well as an increase in finance expenses due to the liquidity crisis caused by the mentioned challenges, which was managed through bank financing."

Its shares closed at Tk22 on Monday, lowering 0.45% from the previous session at the Dhaka bourse.