Rak Ceramics Pjsc · ADX:RAKCEC
Rak Ceramics Pjsc — Q2 & H1 2020 Earnings Presentation
18 slides from Rak Ceramics Pjsc's earnings presentation, August 2020
Slide 1: Earnings Presentation - Q2 & H1 2020 Results
EARNINGS PRESENTATION - Q2 & H1 2020 RESULTS EARNINGS PRESENTATION - Q2 & H1 2020 RESULTS AUGUST 2020 RAK Ceramics PJSC © 2020. All rights reserved
Slide 2: Attendees
EARNINGS PRESENTATION - Q2 & H1 2020 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 22 years Pramod Kumar Chand is the Group Chief Financial Officer of RAK Ceramics. Mr. Chand exp
Slide 3: Disclaimer
EARNINGS PRESENTATION - Q2 & H1 2020 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: Key business highlights
EARNINGS PRESENTATION - Q2 & H1 2020 RESULTS Key business highlights Growth in Saudi Arabia Margin Improvement Savings in fixed SG&A expenses The imposition of anti-dumping Gross profit margins have been Significant savings in fixed SG&A duty on imported tiles from China affected due to lower produc
Slide 5: Early signs of recovery across global operations
EARNINGS PRESENTATION - Q2 & H1 2020 RESULTS Early signs of recovery across global operations UAE Production Optimisation Saudi Arabia Border Closures European recovery Production lines were optimised Saudi borders were closed with Lockdowns continued across to meet demand. From July sales and deliv
Slide 6: Q2 2020 Key financial highlights
EARNINGS PRESENTATION - Q2 & H1 2020 RESULTS Q2 2020 Key financial highlights Total revenue decreased by Total gross profit margin Savings in SG&A fixed is AED -37.3% YoY to AED 411.3m mainly decreased by -580bps YoY to 31.1m YoY due to various cost due to COVID-19 lockdowns 28.5%, due to a decrease
Slide 7: Monthly revenue recovery by end market
EARNINGS PRESENTATION - Q2 & H1 2020 RESULTS Monthly revenue recovery by end market MONTHLY IMPROVEMENTS QUARTERLY COMPARISON Q1 20 April 20 May 20 June 20 Q2 20 Q2 19 United Arab Emirates 159.5 47.2 39.4 51.7 138.4 190.9 -27.5% Kingdom of Saudi Arabia 91.5 18.6 9.2 41.3 69.1 70.7 -2.2% Middle East
Slide 8: H1 2020 Key financial highlights
EARNINGS PRESENTATION - Q2 & H1 2020 RESULTS H1 2020 Key financial highlights Total revenue decreased by Total gross profit margin Reported net profit decreased to -20.6% YoY to AED 1.0bn due to decreased by -210bps YoY to AED 10.5m from 110.3m in H1 19 lower revenue in Q2 on account 31.0%, due to l
Slide 9: Net profit bridge
EARNINGS PRESENTATION - Q2 & H1 2020 RESULTS Net profit bridge MANAGEMENT COMMENTS Q2 2020 VS 2019 (AEDM) Revenue in all markets, except Saudi -22.2 Arabia, was negatively impacted 73.4 -25.0 31.1 during Q2 20 due to COVID-19. 51.2 -77.1 Revenue in April and May 20 was severely impacted however, fro
Slide 10: Revenue highlights
EARNINGS PRESENTATION - Q2 & H1 2020 RESULTS Revenue highlights MANAGEMENT COMMENTS TOTAL REVENUE (AEDM) TILES REVENUE (AEDM) Q2 2020 performance was impacted due to lockdowns in India, 1,265.3 823.4 Bangladesh and Europe. 1,004.1 682.5 Total revenue decreased by -37.3% 656.1 428.6 592.8 394.0 YoY (
Slide 11: Tiles revenues by end market
EARNINGS PRESENTATION - Q2 & H1 2020 RESULTS Tiles revenues by end market QUARTERLY COMPARISON YEARLY COMPARISON Q2 20 Q1 20 Q2 19 H1 20 H1 19 Amount Amount Growth Amount Growth Amount Amount Growth United Arab Emirates 108.1 123.0 -12.1% 151.3 -28.6% 231.1 293.2 -21.2% Kingdom of Saudi Arabia 64.1
Slide 12: Sanitaryware revenues by end market
EARNINGS PRESENTATION - Q2 & H1 2020 RESULTS Sanitaryware revenues by end market QUARTERLY COMPARISON YEARLY COMPARISON Q2 20 Q1 20 Q2 19 H1 20 H1 19 Amount Amount Growth Amount Growth Amount Amount Growth United Arab Emirates 30.3 36.5 -17.1% 39.5 -23.4% 66.8 78.1 -14.6% Kingdom of Saudi Arabia 5.1
Slide 13: Gross profit margins
EARNINGS PRESENTATION - Q2 & H1 2020 RESULTS Gross profit margins TOTAL GROSS MARGINS (%) TILES GROSS MARGINS (%) MANAGEMENT COMMENTS Total gross margin decreased by 32.7 34.4 33.0 -580bps YoY to 28.5% due to lower 31.0 29.9 30.2 29.1 28.5 27.9 28.5 revenue and lower productivity which resulted in u
Slide 14: Financial highlights
EARNINGS PRESENTATION - Q2 & H1 2020 RESULTS Financial highlights QUARTERLY COMPARISON YEARLY COMPARISON YEARLY COMPARISON Q2 20 Q1 20 Q2 19 H1 2020 H1 2019 Amount in AED M Amount Amount Growth Amount Growth Amount Amount Growth Revenue 411.3 592.8 -30.6% 656.1 -37.3% 1,004.1 1,265.3 -20.6% Gross ma
Slide 15: Operating cycle
EARNINGS PRESENTATION - Q2 & H1 2020 RESULTS Operating cycle MANAGEMENT COMMENTS OPERATING CYCLE (AEDM) OPERATING CYCLE (LTM DAYS) Inventory days increased from 261 days to 287 days QoQ due to decreased revenue. Trade receivable days increased to 1,683 1,722 1,739 333 310 310 123 days QoQ due to dec
Slide 16: 2020 Priorities
EARNINGS PRESENTATION - Q2 & H1 2020 RESULTS 2020 Priorities Protect Market Share Saudi Arabia Operational Turnaround Protect the UAE, Bangladesh Growth in Saudi Arabia by Turnaround Europe and Indian market share and tableware and emulating the UAE model operations faucets businesses. Export Market
Slide 17: Contacts
EARNINGS PRESENTATION - Q2 & H1 2020 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 18: EARNINGS PRESENTATION - Q2 & H1 2020 RESULTS RAK Ceramics PJSC © 2020. All
EARNINGS PRESENTATION - Q2 & H1 2020 RESULTS RAK Ceramics PJSC © 2020. All rights reserved 18
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