RAK Ceramics sees profits fall

RAK Ceramics saw its profits slump 34 per cent year-on-year to Tk 28.5 crore in the January-June period of 2023 as its costs largely outgrew sales owing to non-availability of adequate gas and increased cost of gas and electricity.

Volatility in the foreign currency market and disruptions in the global supply chain were the two other factors that affected earnings, said the company in its unaudited financial statements for the second quarter of 2023.

Shares of the ceramics maker stood unchanged at Tk 42.90 on the Dhaka Stock Exchange yesterday.

RAK Ceramics, one of the largest ceramics makers in Bangladesh, said its sales increased marginally in the first half of the year to Tk 381.39 crore from Tk 380.30 crore a year ago.

Revenue growth remained almost flat in the April-June quarter.

On the other hand, its cost of sales, administrative, marketing and selling expenses increased in the first half of 2023.

RAK Ceramic's cost of sales grew 6.5 per cent year-on-year while other expenses soared 19 per cent in the January-June period.

As such, its earnings per share (EPS) fell to Tk 0.67 in the January-June period, down from Tk 1.01 at the same time the previous year.

The ceramics maker also posted reduced earnings in the April-June quarter with its profits plummeting 31 per cent to Tk 12.8 crore.