Rak Ceramics Pjsc · ADX:RAKCEC
Rak Ceramics Pjsc — Q1 2023 Earnings Presentation
25 slides from Rak Ceramics Pjsc's earnings presentation, May 2023
Slide 1: Earnings Presentation – Q1 2023 Results
EARNINGS PRESENTATION – Q1 2023 RESULTS EARNINGS PRESENTATION – Q1 2023 RESULTS MAY 2023 RAK Ceramics PJSC © 2023 All rights reserved
Slide 2: Agenda
EARNINGS PRESENTATION – Q1 2023 RESULTS Agenda 01 | Executive Summary 02 | Business Highlights 03 | Q1 2023 Financial Results Update 04 | Trading Update 05 | Closing Remarks 06 | Appendix RAK Ceramics PJSC © 2023 All rights reserved 2
Slide 3: Speakers
EARNINGS PRESENTATION – Q1 2023 RESULTS Speakers Abdallah Massaad PK Chand Group Chief Executive Officer Group Chief Financial Officer Abdallah Massaad is Group CEO of RAK Ceramics and has more than 24 years Pramod Kumar Chand is Group CFO of RAK Ceramics. Mr. Chand has wide experience experience in
Slide 4: Disclaimer
EARNINGS PRESENTATION – Q1 2023 RESULTS Disclaimer This information contained in the enclosed presentation summarizes preliminary Accordingly all potential recipients are expected to conduct their own due diligence and introductory information on RAK Ceramics PJSC (the Company). This on the informat
Slide 5: Executive Summary
EARNINGS PRESENTATION – Q1 2023 RESULTS EXECUTIVE SUMMARY Speaker: Abdallah Massaad Group CEO RAK Ceramics PJSC © 2023 All rights reserved 5
Slide 6: Q1 2023 Highlights
EARNINGS PRESENTATION – Q1 2023 RESULTS Q1 2023 Highlights Q1 2023 in Brief • Q1 2023 registered strong revenue growth despite difficult market conditions supported by performance of our Tiles and Tableware segment and our strong foothold in the UAE market. As we enter in Q2 2023, we prepare ourselv
Slide 7: Business Highlights
EARNINGS PRESENTATION – Q1 2023 RESULTS BUSINESS HIGHLIGHTS Speaker: Abdallah Massaad Group CEO RAK Ceramics PJSC © 2023 All rights reserved 7
Slide 8: Q1 2023 Key Market Updates
EARNINGS PRESENTATION – Q1 2023 RESULTS Q1 2023 Key Market Updates RAK Ceramics RAK India RAK Bangladesh UAE market has shown strong performance primarily driven by project channel business attributed to the rising real estate market growth in the UAE. While we India market experienced a Our perform
Slide 9: Q1 2023 Key Strategic Updates
EARNINGS PRESENTATION – Q1 2023 RESULTS Q1 2023 Key Strategic Updates Advancements on Expansionary Front Sustainable initiatives We are deeply committed to sustainability and UAE expansion projects have made significant investments in new technologies to reduce environmental impact. • Commercial pro
Slide 10: Q1 2023 Key Challenges
EARNINGS PRESENTATION – Q1 2023 RESULTS Q1 2023 Key Challenges Critical Parameters Key Challenges Our Action • Translate increase in gas price onto selling price while Increase in Gas prices across manufacturing remaining in line with the market Energy Prices locations (UAE, Bangladesh & India) • Im
Slide 11: Q1 2023 Financial Results Update
EARNINGS PRESENTATION – Q1 2023 RESULTS Q1 2023 FINANCIAL RESULTS UPDATE Speaker: PK Chand Group CFO RAK Ceramics PJSC © 2023 All rights reserved 11
Slide 12: Q1 2023 Performance Snapshot
EARNINGS PRESENTATION – Q1 2023 RESULTS Q1 2023 Performance Snapshot Total revenue increased by +12.7% YoY Total gross profit margin increased by Total EBITDA increased to AED 157.1m to AED 882.4m driven by increase in +90bps YoY to reach 37.9% driven by compared to 129.7m in last year. Margin Tiles
Slide 13: Financial Highlights
EARNINGS PRESENTATION – Q1 2023 RESULTS Financial Highlights Quarterly comparison Q1 22 Q4 22 Q1 23 YoY QoQ Amount in AED M Amount Amount Amount Growth Growth Revenue 783.1 900.7 882.4 12.7% -2.0% Gross margin (%) 37.0% 34.2% 37.9% 0.9% 3.7% EBITDA 129.7 137.6 157.1 21.2% 14.2% Reported net profit/(
Slide 14: Revenue Highlights Q1 2023
EARNINGS PRESENTATION – Q1 2023 RESULTS Revenue Highlights Q1 2023 MANAGEMENT COMMENTS TOTAL REVENUE (AEDM) Total revenue increased by +12.7% YoY to Tiles TW Others reach AED 884.2m driven by mainly tiles and SW Faucets tableware segments, followed by Kludi Group Quarterly comparison consolidation w
Slide 15: Gross Profit Margin
EARNINGS PRESENTATION – Q1 2023 RESULTS Gross Profit Margin MANAGEMENT COMMENTS TOTAL GROSS MARGINS (%) TILES GROSS MARGINS (%) Total gross profit margin increased by +90bps YoY to 37.9%, for Q1 2023 driven by higher margins in Tiles & Tableware segment. Tiles margin in Q1 2023 increased by +360bps
Slide 16: Profitability Bridge
EARNINGS PRESENTATION – Q1 2023 RESULTS Profitability Bridge Q1 2023 vs Q1 2022 Profit Bridge (AEDM) +14.9% 11.7 28.8 18.2 16.5 13.6 5.2 80.1 69.7 Q1 2022 Additional Higher Lower freight Higher Interest Swing from Others Q1 2023 Net Profit Gross profit on SG&A -Fixed for decreased cost- net-(excl Kl
Slide 17: Balance Sheet Highlights
EARNINGS PRESENTATION – Q1 2023 RESULTS Balance Sheet Highlights MANAGEMENT COMMENTS WORKING CAPITAL (AEDM) WORKING CAPITAL CYCLE (LTM DAYS) Overall working capital cycle increased from 1,454 1,428 1,411 1,522 167 155 1,262 149 145 156 145 days in Q4 2022 to 156 days in Q1 2023. In 88 907 863 865 92
Slide 18: Share Price Update
EARNINGS PRESENTATION – Q1 2023 RESULTS SHARE PRICE UPDATE Speaker: PK Chand Group CFO RAK Ceramics PJSC © 2023 All rights reserved 18
Slide 19: RAK Ceramics Share Price Movement
EARNINGS PRESENTATION – Q1 2023 RESULTS RAK Ceramics Share Price Movement AED CURRENT VALUATION (AED M) RAK CERAMICS (RAKCEC) SHARE PRICE PERFORMANCE (AED) WAP 2.82 11/05/2023 31/12/2022 52 week high 3.01 Amount Amount 52 week low 2.51 Share price 2.61 2.83 3.5 As of 11th May 2023 Number of shares (
Slide 20: Closing Remarks
EARNINGS PRESENTATION – Q1 2023 RESULTS CLOSING REMARKS Speaker: Abdallah Massaad Group CEO RAK Ceramics PJSC © 2023 All rights reserved 20
Slide 21: 2023 Priorities
EARNINGS PRESENTATION – Q1 2023 RESULTS 2023 Priorities Protect Market Share Production Capabilities Growth Maintain healthy competition across all core markets and Rationalize footprint and increase capacity across all core segments albeit increased challenges businesses via plant additions, enhanc
Slide 22: Q&A
EARNINGS PRESENTATION – Q1 2023 RESULTS Q&A Abdallah Massaad PK Chand Group CEO Group CFO RAK Ceramics PJSC © 2023 All rights reserved 22
Slide 23: Appendix
EARNINGS PRESENTATION – Q1 2023 RESULTS APPENDIX RAK Ceramics PJSC © 2023 All rights reserved 23
Slide 24: EBITDA Working
EARNINGS PRESENTATION – Q1 2023 RESULTS EBITDA Working Quarterly comparison Q1 22 Q4 22 Q1 23 Amount in AED M Amount Amount Amount Net profit/(loss) after tax 69.7 78.0 80.1 Tax 6.9 (10.6) 5.0 Interest- net 12.2 23.0 24.8 Depreciation & amortization 40.9 47.3 47.5 Impairment on Investment properties
Slide 25: Thank You
EARNINGS PRESENTATION – Q1 2023 RESULTS Thank You CONTACT US If you have any questions or require further information, please do not hesitate to contact our investor relations department. Investor Relations RAK Ceramics PJSC P.O. Box: 4714, Ras Al Khaimah, United Arab Emirates E. ir@rakceramics.com