Rak Ceramics Pjsc · ADX:RAKCEC
Rak Ceramics Pjsc — Q2 & H1 2021 Earnings Presentation
22 slides from Rak Ceramics Pjsc's earnings presentation, August 2021
Slide 1: Earnings Presentation - Q2 & H1 2021 Results
EARNINGS PRESENTATION - Q2 & H1 2021 RESULTS EARNINGS PRESENTATION - Q2 & H1 2021 RESULTS AUGUST 2021 RAK Ceramics PJSC © 2021 All rights reserved
Slide 2: Attendees
EARNINGS PRESENTATION - Q2 & H1 2021 RESULTS Attendees Abdallah Massaad PK Chand Group Chief Executive Officer Group Chief Financial Officer Abdallah Massaad is Group CEO of RAK Ceramics and has more than 23 years Pramod Kumar Chand is the Group Chief Financial Officer of RAK Ceramics. Mr. Chand exp
Slide 3: Disclaimer
EARNINGS PRESENTATION - Q2 & H1 2021 RESULTS Disclaimer This information contained in the enclosed presentation summarises preliminary and and past performance is not indicative of future results. The Company undertakes no introductory information on RAK Ceramics PJSC (the Company). This presentatio
Slide 4: Revenue and profitability surpass pre-pandemic levels to record high performance
EARNINGS PRESENTATION - Q2 & H1 2021 RESULTS Revenue and pro tability surpass pre- pandemic levels to record high performance MANAGEMENT COMMENTS TOTAL REVENUE (AEDM) REPORTED NET PROFIT (AEDM) Total revenue for Q2 2021 has +5.0% +29.3% surpassed pre-pandemic levels increasing by 5.0% compared to 71
Slide 5: Q2 2021 Key financial highlights
EARNINGS PRESENTATION - Q2 & H1 2021 RESULTS Q2 2021 Key nancial highlights Total revenue increased by Total gross profit margin Reported net profit is higher at +70.4% YoY to AED 700.8m driven increased by +9.6% YoY to 38.1%. AED 94.9m compared to net loss by growth in all markets. QoQ Tiles margin
Slide 6: Q2 2021 Key market highlights
EARNINGS PRESENTATION - Q2 & H1 2021 RESULTS Q2 2021 Key market highlights UAE Strong growth in Saudi Arabia European recovery Continued improvement in Strategy to establish Saudi Arabia The business surpassed pre- operational efficiencies led to all as a key market continues to yield pandemic level
Slide 7: H1 2021 Key financial highlights
EARNINGS PRESENTATION - Q2 & H1 2021 RESULTS H1 2021 Key nancial highlights Total revenue increased by Total gross profit margin Reported net profit is AED +41.8% YoY to AED 1.42bn. Last increased by +560bps YoY an all- 157.6m after considering net one- year Q2 revenue was impacted time high of 36.5
Slide 8: Net profit bridge
EARNINGS PRESENTATION - Q2 & H1 2021 RESULTS Net pro t bridge MANAGEMENT COMMENTS Q2 2021 VS Q2 2020 (AEDM) Reported net profit for Q2 2021 increased by AED 114.7m YoY to AED 94.9m driven by increased 149.7 -40.1 50.1 -27.2 revenue, higher GP margins and net -18.0 94.9 one-off gain of AED 22.9m. -19
Slide 9: Quarterly revenue recovery by end market
EARNINGS PRESENTATION - Q2 & H1 2021 RESULTS Quarterly revenue recovery by end market REVENUE BY END MARKET (AED M) QUARTERLY COMPARISON YEARLY COMPARISON Q2 20 Q3 20 Q4 20 Q1 21 Q2 21 H1 2020 H1 2021 Amount Amount Amount Amount Amount YoY QoQ Amount Amount YoY Growth Growth Growth United Arab Emira
Slide 10: Revenue highlights
EARNINGS PRESENTATION - Q2 & H1 2021 RESULTS Revenue highlights MANAGEMENT COMMENTS TOTAL REVENUE (AEDM) TILES REVENUE (AEDM) Q2 2021 revenue performance improved across all our businesses. 992.9 Total revenue is increased by 1,423.5 +70.4% YoY to AED 700.8m while it 1,004.1 682.5 is lower by -3.0%
Slide 11: Gross profit margins
EARNINGS PRESENTATION - Q2 & H1 2021 RESULTS Gross pro t margins TOTAL GROSS MARGINS (%) TILES GROSS MARGINS (%) MANAGEMENT COMMENTS 35.0 38.1 36.5 35.5 39.7 37.5 In Q2 2021 total gross profit margin increased by +960bps YoY to 38.1% 31.0 29.1 28.5 27.9 and QoQ increased by +310bps due to improved e
Slide 12: Financial highlights
EARNINGS PRESENTATION - Q2 & H1 2021 RESULTS Financial highlights QUARTERLY COMPARISON YEARLY COMPARISON Q2 20 Q1 21 Q2 21 H1 2020 H1 2021 Amount in AED M Amount Amount Amount YoY rowth QoQ Growth Amount Amount Growth Revenue 411.3 722.8 700.8 70.4% (3.0%) 1,004.1 1,423.5 41.8% Gross margin (%) 28.5
Slide 13: Proposal to distribute semi-annual cash dividend
EARNINGS PRESENTATION - Q2 & H1 2021 RESULTS Proposal to distribute semi-annual cash dividend MANAGEMENT COMMENTS HISTORICAL ANNUAL DIVIDEND PAID (H1 2021 -SEMI ANNUAL) The Board proposed to distribute semi-annual cash dividend of 10 30.0% fils per share for first half of the 25.0% year 2021 (AED 99
Slide 14: Working capital cycle
EARNINGS PRESENTATION - Q2 & H1 2021 RESULTS Working capital cycle MANAGEMENT COMMENTS WORKING CAPITAL CYCLE (AEDM) WORKING CAPITAL CYCLE (LTM DAYS) Inventory days decreased from 225 days to 212 days QoQ due to 1,371 1,278 1,287 increased LTM revenue. 228 Trade receivable days also 397 193 361 370 5
Slide 15: 2021 Priorities
EARNINGS PRESENTATION - Q2 & H1 2021 RESULTS 2021 Priorities Protect Market Share Improve tableware performance Build Retail Concept Protect market share and Improve performance in light of Retail concept in focus markets profitability in the UAE, Bangladesh the ongoing impact in the Airlines throug
Slide 16: Appendix
EARNINGS PRESENTATION - Q2 & H1 2021 RESULTS Appendix RAK Ceramics PJSC © 2021 All rights reserved 16
Slide 17: Tiles revenues by end market
EARNINGS PRESENTATION - Q2 & H1 2021 RESULTS Tiles revenues by end market COMPARISON YEARLY COMPARISON Q2 20 Q1 21 Q2 21 H1 2020 H1 2021 Amount in AED M Amount Amount Amount Growth YoY Growth QoQ Amount Amount Growth United Arab Emirates 108.1 127.4 110.7 2.5% (13.1%) 231.1 238.1 3.0% Kingdom of Sau
Slide 18: Sanitaryware revenues by end market
EARNINGS PRESENTATION - Q2 & H1 2021 RESULTS Sanitaryware revenues by end market COMPARISON YEARLY COMPARISON Q2 20 Q1 21 Q2 21 H1 2020 H1 2021 Amount in AED M Amount Amount Amount Growth YoY Growth QoQ Amount Amount Growth United Arab Emirates 30.3 35.5 32.9 8.8% (7.1%) 66.8 68.4 2.4% Kingdom of Sa
Slide 19: EBITDA working
EARNINGS PRESENTATION - Q2 & H1 2021 RESULTS EBITDA working QUARTERLY COMPARISON YEARLY COMPARISON Q2 20 Q1 21 Q2 21 H1 2020 H1 2021 Amount in AED M Amount Amount Amount Amount Amount Net profit/(loss) after tax (19.8) 62.7 94.9 10.5 157.6 Tax (1.5) 5.6 2.2 1.6 7.8 Interest- net 17.8 15.3 14.0 34.4
Slide 20: Like for Like net profit working
EARNINGS PRESENTATION - Q2 & H1 2021 RESULTS Like for Like net pro t working QUARTERLY COMPARISON YEARLY COMPARISON Q2 20 Q1 21 Q2 21 H1 2020 H1 2021 Amount in AED M Amount Amount Amount Amount Amount Net profit /(loss) after tax (19.8) 62.7 94.9 10.5 157.6 Add: Impairment on trade receivables 5.7 1
Slide 21: Contacts
EARNINGS PRESENTATION - Q2 & H1 2021 RESULTS Contacts INVESTOR RELATIONS If you have any questions or require further information, please do not hesitate to contact our investor relations department. Investor Relations RAK Ceramics Al Jazeera Al Hamra PO Box 4714 Ras Al Khaimah United Arab Emirates
Slide 22: EARNINGS PRESENTATION - Q2 & H1 2021 RESULTS RAK Ceramics PJSC © 2021 All
EARNINGS PRESENTATION - Q2 & H1 2021 RESULTS RAK Ceramics PJSC © 2021 All rights reserved 22
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