Rak Ceramics Pjsc · ADX:RAKCEC
Rak Ceramics Pjsc — Q3 2024 Earnings Presentation
25 slides from Rak Ceramics Pjsc's earnings presentation, November 2024
Slide 1: Earnings Presentation – Q3 & 9M 2024 Results
EARNINGS PRESENTATION – Q3 & 9M 2024 RESULTS EARNINGS PRESENTATION – Q3 & 9M 2024 RESULTS November 2024 RAK Ceramics PJSC © 2024 All rights reserved
Slide 2: Agenda
EARNINGS PRESENTATION – Q3 & 9M 2024 RESULTS Agenda 01 | Executive Summary 02 | Business Highlights 03 | Q3 & 9M 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 – Q3 & 9M 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 – Q3 & 9M 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 – Q3 & 9M 2024 RESULTS Business Highlights Speaker: Abdallah Massaad Group CEO RAK Ceramics PJSC © 2024 All rights reserved 5
Slide 6: Global Business Presence
EARNINGS PRESENTATION – Q3 & 9M 2024 RESULTS Global Business Presence Where we sell What we sell (Revenue Mix) Europe Rest of World 23% 9% Middle East 6% Tiles Sanitaryware 57% 15% KSA BANGLADESH 6% Tableware Faucets Others 9% India 11% 11% 14% 3% UAE 36% Capacity 118MN 5MN 36MN 2.6MN Square metres
Slide 7: Q3 2024 Business Performance Highlight
EARNINGS PRESENTATION – Q3 & 9M 2024 RESULTS Q3 2024 Business Performance Highlight Tiles & Sanitaryware Market Highlights Segment Highlights UAE: Registered a Year-on-Year (‘YoY’) revenue growth of 13.6% Tiles revenue saw a YoY decline of 1.5% at AED 468.2 million, primarily due to the growth i
Slide 8: Q3 2024 Key Challenges
EARNINGS PRESENTATION – Q3 & 9M 2024 RESULTS Q3 2024 Key Challenges Core Markets Key Challenges Our Actions UAE Import of cheaper products has increased on account of • Partner with reputed developers in the UAE to provide free trade agreements signed between UAE and other Tiles and Sanitaryware pro
Slide 9: Q3 2024 Key Strategic Updates
EARNINGS PRESENTATION – Q3 & 9M 2024 RESULTS Q3 2024 Key Strategic Updates Advancements on Expansionary Front. Expansion projects • UAE: We continue to invest in upgrading our Tiles production facilities to allow us to produce differentiated and large format Tiles. • We are also investing in our UAE
Slide 10: Q3 & 9M 2024 Financial Performance Update
EARNINGS PRESENTATION – Q3 & 9M 2024 RESULTS Q3 & 9M 2024 Financial Performance Update Speaker: PK Chand Group CFO RAK Ceramics PJSC © 2024 All rights reserved 10
Slide 11: Q3 2024 Financial Performance Snapshot
EARNINGS PRESENTATION – Q3 & 9M 2024 RESULTS Q3 2024 Financial Performance Snapshot Revenue Gross Margin EBITDA AED 802.5 MN 41.2% AED 146.2 M 4.1% YoY 250 bps YoY 13.5% YoY 3.3% QoQ Net Profit after tax Net Profit After Minority Net Debt * AED 55.9 M AED 54.5 M AED 1.57 BN 33.3% YoY 29.2% YoY 14.1M
Slide 12: 9M 2024 Financial Performance Snapshot
EARNINGS PRESENTATION – Q3 & 9M 2024 RESULTS 9M 2024 Financial Performance Snapshot Revenue Gross Margin EBITDA AED 2.36 BN 40.0% AED 434.2 M 8.9%YoY 140 bps YoY 9.8% YoY Net Profit after tax Net Profit After Minority Net Debt * AED 169.9 M AED 162.4 M AED 1.57 BN 29.0% YoY 26.2% YoY 146.9 M *Impact
Slide 13: Revenue Highlights Q3/9M 2024
EARNINGS PRESENTATION – Q3 & 9M 2024 RESULTS Revenue Highlights Q3/9M 2024 MANAGEMENT COMMENTS • Q3 2024 revenue at AED 802.5m, down by 4.1% year-on-year and 9M Quarterly Comparison Yearly Comparison 2024 down by -8.9% at AED 2.36bn, Q3 23 Q2 24 Q3 24 9M 2023 9M 2024 reflecting global geopolitical t
Slide 14: Gross Profit Margin
EARNINGS PRESENTATION – Q3 & 9M 2024 RESULTS Gross Profit Margin TOTAL GROSS MARGINS (%) TILES GROSS MARGINS (%) SANITARYWARE GROSS MARGINS (%) 38.8% 39.6% 41.2% 38.6% 40.0% 39.1% 39.2% 42.5% 39.0% 40.4% 31.8% 32.9% 33.8% 34.3% 32.2% Q3 23 Q2 24 Q3 24 9M 2023 9M 2024 Q3 23 Q2 24 Q3 24 9M 2023 9M 202
Slide 15: Profitability Bridge
EARNINGS PRESENTATION – Q3 & 9M 2024 RESULTS Profitability Bridge Q3 2023 vs Q232024 Profit Bridge (AEDM) -33.8% 20.6 (14.2) (5.5) (10.4) (2.3) 3.0 91.9 (14.1) (5.1) 60.8 (7.9) 55.9 Profit before Lower Gross Higher GP Higher variable Higher SG&A - Higher Finance Lower Other Others Profit before UAE
Slide 16: Balance Sheet Highlights
EARNINGS PRESENTATION – Q3 & 9M 2024 RESULTS Balance Sheet Highlights MANAGEMENT COMMENTS WORKING CAPITAL (AEDM) WORKING CAPITAL (DAYS) • Overall working capital cycle decreased 1,541 1,482 1,383 1,554 1,537 197 196 from 197 days in Q2 2024 to 196 days in Q3 172 161 396 401 165 44 45 Trade receivabl
Slide 17: Share Price Update
EARNINGS PRESENTATION – Q3 & 9M 2024 RESULTS Share Price Update Speaker: PK Chand Group CFO RAK Ceramics PJSC © 2024 All rights reserved 17
Slide 18: RAK Ceramics Share Price Movement
EARNINGS PRESENTATION – Q3 & 9M 2024 RESULTS RAK Ceramics Share Price Movement AED CURRENT VALUATION (AED M) WAP 2.55 RAK CERAMICS (RAKCEC) SHARE PRICE PERFORMANCE (AED) 8/11/2024 31/12/2023 52 week high 2.90 52 week low 2.24 Amount Amount Share price 2.58 2.90 As of 08th November, 2024 Number of sh
Slide 19: Closing Remarks
EARNINGS PRESENTATION – Q3 & 9M 2024 RESULTS Closing Remarks Speaker: Abdallah Massaad Group CEO RAK Ceramics PJSC © 2024 All rights reserved 19
Slide 20: 2024 Priorities
EARNINGS PRESENTATION – Q3 & 9M 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 21: Q&A
EARNINGS PRESENTATION – Q3 & 9M 2024 RESULTS Q&A Q&A RAK Ceramics PJSC © 2024 All rights reserved 21
Slide 22: Appendix
EARNINGS PRESENTATION – Q3 & 9M 2024 RESULTS APPENDIX RAK Ceramics PJSC © 2024 All rights reserved 22
Slide 23: Financial Highlights
EARNINGS PRESENTATION – Q3 & 9M 2024 RESULTS Financial Highlights Quarterly comparison Yearly Comparison Q3 23 Q2 24 Q3 24 9M 2023 9M 2024 YoY QoQ YoY Amount in AED M Amount Amount Amount Amount Amount Growth Growth Growth Revenue 837.0 777.0 802.5 -4.1% 3.3% 2,591.4 2,361.2 -8.9% Gross margin (%) 3
Slide 24: EBITDA Working
EARNINGS PRESENTATION – Q3 & 9M 2024 RESULTS EBITDA Working Quarterly comparison Yearly comparison Q3 23 Q2 24 Q3 24 9M 2023 9M 2024 Amount in AED M Amount Amount Amount Amount Amount Net profit/(loss) after tax 83.9 51.0 55.9 239.1 169.9 Tax 8.0 8.8 4.9 18.0 24.7 Interest- net 27.4 27.9 29.7 79.3 8
Slide 25: Thank You
EARNINGS PRESENTATION – Q3 & 9M 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