Rak Ceramics Pjsc · ADX:RAKCEC
Rak Ceramics Pjsc — Q2 2024 Earnings Presentation
26 slides from Rak Ceramics Pjsc's earnings presentation, August 2024
Slide 1: Earnings Presentation – Q2 & H1 2024 Results
EARNINGS PRESENTATION – Q2 & H1 2024 RESULTS EARNINGS PRESENTATION – Q2 & H1 2024 RESULTS August 2024 RAK Ceramics PJSC © 2024 All rights reserved
Slide 2: Agenda
EARNINGS PRESENTATION – Q2 & H1 2024 RESULTS Agenda 01 | Executive Summary 02 | Business Highlights 03 | Q2 & H1 2024 Financial Results Update 04 | Trading Update 05 | Closing Remarks 06 | Appendix RAK Ceramics PJSC © 2024 All rights reserved 2
Slide 3: Speakers
EARNINGS PRESENTATION – Q2 & H1 2024 RESULTS Speakers Abdallah Massaad is Group CEO Pramod Kumar Chand is Group of RAK Ceramics and has more CFO of RAK Ceramics. Mr. Chand than 26 years experience in has wide experience in dealing ceramics manufacturing, sales with corporate finance matters manageme
Slide 4: Disclaimer
EARNINGS PRESENTATION – Q2 & H1 2024 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 inf
Slide 5: Business Highlights
EARNINGS PRESENTATION – Q2 & H1 2024 RESULTS Business Highlights Speaker: Abdallah Massaad Group CEO RAK Ceramics PJSC © 2024 All rights reserved 5
Slide 6: Global Business Presence
EARNINGS PRESENTATION – Q2 & H1 2024 RESULTS Global Business Presence Where we sell What we sell (Revenue Mix) Europe Rest of World 23% 10% Middle East 5% Tiles Sanitaryware 56% 15% KSA BANGLADESH 7% Tableware Faucets Others 8% India 12% 12% 14% 3% UAE 35% Capacity 118MN 5MN 36MN 2.6MN Square metres
Slide 7: Q2 2024 Business Performance Highlight
EARNINGS PRESENTATION – Q2 & H1 2024 RESULTS Q2 2024 Business Performance Highlight Tiles & Sanitaryware Market Highlights Segment Highlights UAE: Registered a Year-on-Year (‘YoY’) revenue decline of 1.2% in Tiles revenue saw a YoY decline of 13.4% at AED 430.6 million, Q2 2024 primarily due to
Slide 8: Q2 2024 Key Challenges
EARNINGS PRESENTATION – Q2 & H1 2024 RESULTS Q2 2024 Key Challenges Core Markets Key Challenges Our Actions UAE Import of cheaper products has increased on account of • Focusing on increasing our capabilities for large format free trade agreements signed between UAE and other tiles and leveraging on
Slide 9: Q2 2024 Key Strategic Updates
EARNINGS PRESENTATION – Q2 & H1 2024 RESULTS Q2 2024 Key Strategic Updates Advancements on Expansionary Front. Expansion projects • India: In India, upgrades to our Tiles plant in Gris is completed thus increasing our GVT tiles production capabilities. • UAE: Investments in upgrading our Tiles and S
Slide 10: Q2 & H1 2024 Financial Performance Update
EARNINGS PRESENTATION – Q2 & H1 2024 RESULTS Q2 & H1 2024 Financial Performance Update Speaker: PK Chand Group CFO RAK Ceramics PJSC © 2024 All rights reserved 10
Slide 11: Q2 2024 Financial Performance Snapshot
EARNINGS PRESENTATION – Q2 & H1 2024 RESULTS Q2 2024 Financial Performance Snapshot Revenue Gross Margin EBITDA AED 777.0 MN 39.6% AED 136.9 M 10.9%YoY 110 bps YoY 11.9% YoY Net Profit after tax Net Profit After Minority Net Debt * AED 51.0 M AED 50.3 M AED 1.55 BN 32.1% YoY 27.8% YoY 187.1M QoQ *Im
Slide 12: H1 2024 Financial Performance Snapshot
EARNINGS PRESENTATION – Q2 & H1 2024 RESULTS H1 2024 Financial Performance Snapshot Revenue Gross Margin EBITDA AED 1.56 BN 39.4% AED 288.0 M 11.2%YoY 90 bps YoY 7.9% YoY Net Profit after tax Net Profit After Minority Net Debt * AED 113.9 M AED 107.9 M AED 1.55 BN 26.6% YoY 24.6% YoY 132.8 M *Impact
Slide 13: Revenue Highlights Q2/H1 2024
EARNINGS PRESENTATION – Q2 & H1 2024 RESULTS Revenue Highlights Q2/H1 2024 MANAGEMENT COMMENTS • Q2 2024 revenue at AED 777.0m, down by 10.9% year-on-year and H1 Quarterly Comparison Yearly Comparison 2024 down by -11.2% at AED 1.56bn, Q2 23 Q1 24 Q2 24 6M 2023 6M 2024 reflecting global geopolitical
Slide 14: Gross Profit Margin
EARNINGS PRESENTATION – Q2 & H1 2024 RESULTS Gross Profit Margin TOTAL GROSS MARGINS (%) TILES GROSS MARGINS (%) SANITARYWARE GROSS MARGINS (%) 38.5% 39.3% 39.6% 38.5% 39.4% 39.1% 39.4% 39.2% 39.0% 39.3% 34.9% 32.9% 35.4% 29.7% 31.3% Q2 23 Q1 24 Q2 24 6M 2023 6M 2024 Q2 23 Q1 24 Q2 24 6M 2023 6M 202
Slide 15: Profitability Bridge
EARNINGS PRESENTATION – Q2 & H1 2024 RESULTS Profitability Bridge Q2 2023 vs Q2 2024 Profit Bridge (AEDM) -25.3% 15.1 0.3 9.7 80.1 (0.7) (3.7) (37.4) (3.6) 59.8 (6.4) (2.4) 51.0 Profit before Lower Gross Higher GP Lower Lower SG&A Higher Lower Other Others Profit before UAE Rest of world Net profit
Slide 16: Balance Sheet Highlights
EARNINGS PRESENTATION – Q2 & H1 2024 RESULTS Balance Sheet Highlights MANAGEMENT COMMENTS WORKING CAPITAL (AEDM) WORKING CAPITAL (DAYS) • Overall working capital cycle increased from 1,570 1,541 1,482 1,554 172 161 197 161 days in Q1 2024 to 197 days in Q2 2024. 1,383 165 391 396 163 44 Also, in abs
Slide 17: Share Price Update
EARNINGS PRESENTATION – Q2 & H1 2024 RESULTS Share Price Update Speaker: PK Chand Group CFO RAK Ceramics PJSC © 2024 All rights reserved 17
Slide 18: Dividend Update
EARNINGS PRESENTATION – Q2 & H1 2024 RESULTS Dividend Update MANAGEMENT COMMENTS HISTORICAL ANNUAL DIVIDEND PAID (%) In-line with its dividend policy commitment, the Board proposed to distribute interim cash dividend of 10 fils per share for first half of 2024 (AED 99.4million). 30.0% 25.0% 20.0% 20
Slide 19: RAK Ceramics Share Price Movement
EARNINGS PRESENTATION – Q2 & H1 2024 RESULTS RAK Ceramics Share Price Movement AED CURRENT VALUATION (AED M) WAP 2.59 RAK CERAMICS (RAKCEC) SHARE PRICE PERFORMANCE (AED) 52 week high 2.90 Amount Amount 52 week low 2.24 Share price 2.33 2.9 As of 7th August, 2024 Number of shares (in 994 994 3.450 Mn
Slide 20: Closing Remarks
EARNINGS PRESENTATION – Q2 & H1 2024 RESULTS Closing Remarks Speaker: Abdallah Massaad Group CEO RAK Ceramics PJSC © 2024 All rights reserved 20
Slide 21: 2024 Priorities
EARNINGS PRESENTATION – Q2 & H1 2024 RESULTS 2024 Priorities Protect Market Production Capabilities Operational Digital Acceleration Share Growth Diversification Maintain healthy competition Rationalize footprint and Explore and diversify into new Improve operating model across all core markets and
Slide 22: Q&A
EARNINGS PRESENTATION – Q2 & H1 2024 RESULTS Q&A Q&A RAK Ceramics PJSC © 2024 All rights reserved 22
Slide 23: Appendix
EARNINGS PRESENTATION – Q2 & H1 2024 RESULTS APPENDIX RAK Ceramics PJSC © 2024 All rights reserved 23
Slide 24: Financial Highlights
EARNINGS PRESENTATION – Q2 & H1 2024 RESULTS Financial Highlights Quarterly comparison Yearly Comparison Q2 23 Q1 24 Q2 24 6M 2023 6M 2024 YoY QoQ YoY Amount in AED M Amount Amount Amount Amount Amount Growth Growth Growth Revenue 872.0 781.6 777.0 -10.9% -0.6% 1,754.4 1,558.7 -11.2% Gross margin (%
Slide 25: EBITDA Working
EARNINGS PRESENTATION – Q2 & H1 2024 RESULTS EBITDA Working Quarterly comparison Yearly comparison Q2 23 Q1 24 Q2 24 6M 2023 6M 2024 Amount in AED M Amount Amount Amount Amount Amount Net profit/(loss) after tax 75.2 62.9 51.0 155.3 113.9 Tax 5.0 11.0 8.8 10.0 19.8 Interest- net 27.1 27.1 27.9 51.9
Slide 26: Thank You
EARNINGS PRESENTATION – Q2 & H1 2024 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