RAK Ceramics incurs Tk21cr loss in H1 due to slow demand
During the January-June period, its revenue slightly fell to Tk310 crore, compared to the previous year at the same time, the UAE-based ceramics manufacturer said.
RAK Ceramics (Bangladesh) posted that it incurred a loss of Tk21 crore in the first half of this year mainly due to the slow demands in ceramics tiles, according to the company's financial statements.
The UAE-based ceramics manufacturer said, during the January-June period, its revenue slightly fell to Tk310 crore, compared to the same period last year.
As of the end of June, its loss per share stood at Tk0.49, whereas it had reported earnings per share of Tk0.09 during the same period last year.
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Besides, in the second quarter (April–June), its revenue rose by 15% to Tk163 crore; however, it incurred a loss of Tk18.50 crore—18 times higher than the loss recorded in the same quarter of the previous year.
The company said in its price sensitive statement, sales decreased by 3% due to declining market demand.
Gross profit margin also declined significantly from 20.66% to 15.03%, mainly because of rising of raw materials and manufacturing costs, it added.
Finance expenses increased due to additional bank funding required to meet working capital needs, leading to a decline in net profit after tax, read the statement.
Meanwhile, its share price jumped by 9.57% to reach at Tk22.90 on Tuesday at the Dhaka Stock Exchange (DSE) as the company back to A category from Z.
Earlier, the DSE downgraded the company's shares to the Z category for failing to disburse the declared 10% cash dividend for 2024 within the stipulated timeframe.
Later, the company disbursed the dividend, and submitted the dividend compliance report to the DSE on Monday.
