Rak Ceramics Pjsc · ADX:RAKCEC
Rak Ceramics Pjsc — Q1 2024 Earnings Presentation
24 slides from Rak Ceramics Pjsc's earnings presentation, May 2024
Slide 1: Earnings Presentation – Q1 2024 Results
EARNINGS PRESENTATION – Q1 2024 RESULTS MAY 2024
Slide 2: Agenda
EARNINGS PRESENTATION – Q1 2024 RESULTS Agenda 01 | Executive Summary 02 | Business Highlights 03 | Q1 2024 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 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 management, p
Slide 4: Disclaimer
EARNINGS PRESENTATION – Q1 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 informat
Slide 5: Business Highlights
EARNINGS PRESENTATION – Q1 2024 RESULTS Business Highlights Speaker: Abdallah Massaad Group CEO RAK Ceramics PJSC © 2023 All rights reserved 5
Slide 6: Global Business Presence
EARNINGS PRESENTATION – Q1 2024 RESULTS Global Business Presence Where we sell What we sell (Revenue Mix) Europe Rest of World 24% 6% Middle East 5% Tiles Sanitaryware 57% 14% KSA BANGLADESH 8% Tableware Faucets Others 9% India 12% 12% 15% 2% UAE 36% Capacity 118MN 5MN 36MN 2.6MN Square metres of ti
Slide 7: Q1 2024 Business Performance Highlight
EARNINGS PRESENTATION – Q1 2024 RESULTS Q1 2024 Business Performance Highlight Tiles & Sanitaryware Market Highlights Segment Highlights UAE: Achieved 6% year-on-year revenue growth in Q1 2024 Tiles revenue saw a year-on-year decline of 14.8% at AED primarily driven by retail and project channel
Slide 8: Q1 2024 Key Challenges
EARNINGS PRESENTATION – Q1 2024 RESULTS Q1 2024 Key Challenges Core Markets Key Challenges Our Actions UAE Import of cheaper products has increased on • Strategic approach centers on adaptability, account of free trade agreements signed between implementing and leveraging on brand enhancement UAE an
Slide 9: Q1 2024 Key Strategic Updates
EARNINGS PRESENTATION – Q1 2024 RESULTS Q1 2024 Key Strategic Updates Advancements on Expansionary Front. Expansion projects • India: In India, upgrades to our Tiles plant in Gris are progressing and we expect production of GVT tiles to commence in Q2 2024. • UAE: Investments in upgrading our Tiles
Slide 10: Q1 2024 Financial Performance Update
EARNINGS PRESENTATION – Q1 2024 RESULTS Q1 2024 Financial Performance Update Speaker: PK Chand Group CFO RAK Ceramics PJSC © 2023 All rights reserved 10
Slide 11: Q1 2024 Financial Performance Snapshot
EARNINGS PRESENTATION – Q1 2024 RESULTS Q1 2024 Financial Performance Snapshot Revenue Gross Margin EBITDA AED 781.6 MN 39.3% AED 151.0 M 11.4%YoY 70 bps YoY 3.9% YoY Net Profit after tax Net Profit After Minority Net Debt * AED 62.9 M AED 57.6 M AED 1.37 BN 21.5% YoY 21.6% YoY 54.3 M *Impact of new
Slide 12: Financial Highlights
EARNINGS PRESENTATION – Q1 2024 RESULTS Financial Highlights Quarterly comparison Q1 23 Q4 23 Q1 24 Amount in AED M Amount Amount Amount YoY Growth QoQ Growth Revenue 882.4 866.4 781.6 -11.4% -9.8% Gross margin (%) 38.7% 35.6% 39.3% 0.7% 3.7% EBITDA 157.1 166.0 151.0 -3.9% -9.0% Profit before tax 85
Slide 13: Revenue Highlights Q1 2024
EARNINGS PRESENTATION – Q1 2024 RESULTS Revenue Highlights Q1 2024 MANAGEMENT COMMENTS Quarterly Comparison Q1 23 Q4 23 Q1 24 • Q1 2024 revenue at AED 781.6m, Amount Amount Amount YoY Growth QoQ Growth down by 11.4% year-on-year, reflecting global geopolitical United Arab Emirates 189.9 207.0 201.5
Slide 14: Gross Profit Margin
EARNINGS PRESENTATION – Q1 2024 RESULTS Gross Profit Margin TOTAL GROSS MARGINS (%) TILES GROSS MARGINS (%) SANITARYWARE GROSS MARGINS (%) 38.7% 35.6% 39.3% 38.9% 39.4% 36.4% 36.0% 34.0% 29.7% Q1 23 Q4 23 Q1 24 Q1 23 Q4 23 Q1 24 Q1 23 Q4 23 Q1 24 MANAGEMENT COMMENTS TABLEWARE GROSS MARGINS (%) FAUCE
Slide 15: Profitability Bridge
EARNINGS PRESENTATION – Q1 2024 RESULTS Profitability Bridge Q1 2023 vs Q1 2024 Profit Bridge (AEDM) -13.1% Profit Lower Lower freight Higher Rest of the Profit UAE Net Profit before tax Gross for Finance Others world Lower Fixed before tax Corporate after tax Q1 2023 profit due decreased cost- net
Slide 16: Balance Sheet Highlights
EARNINGS PRESENTATION – Q1 2024 RESULTS Balance Sheet Highlights WORKING CAPITAL (AEDM) WORKING CAPITAL CYCLE (LTM DAYS) MANAGEMENT COMMENTS 1,522.0 1,569.6 1,541.2 1,482.0 1,382.9 156 163 165 172 161 • Overall working capital cycle decreased 90 88 941 884 88 90 87 923 850 811 from 172 days in Q4 20
Slide 17: Share Price Update
EARNINGS PRESENTATION – Q1 2024 RESULTS Share Price Update Speaker: PK Chand Group CFO RAK Ceramics PJSC © 2023 All rights reserved 17
Slide 18: RAK Ceramics Share Price Movement
EARNINGS PRESENTATION – Q1 2024 RESULTS RAK Ceramics Share Price Movement AED CURRENT VALUATION (AED M) WAP 2.64 RAK CERAMICS (RAKCEC) SHARE PRICE PERFORMANCE (AED) 31st December 52 week high 2.90 6th May 2024 52 week low 2.38 2023 Amount Amount As of 6th May 2024 Share price 2.70 2.90 3.45 Number o
Slide 19: Closing Remarks
EARNINGS PRESENTATION – Q1 2024 RESULTS Closing Remarks Speaker: Abdallah Massaad Group CEO RAK Ceramics PJSC © 2023 All rights reserved 19
Slide 20: 2024 Priorities
EARNINGS PRESENTATION – Q1 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 incre
Slide 21: Q&A
EARNINGS PRESENTATION – Q1 2024 RESULTS Q&A Q&A RAK Ceramics PJSC © 2023 All rights reserved 21
Slide 22: Appendix
EARNINGS PRESENTATION – Q1 2024 RESULTS APPENDIX RAK Ceramics PJSC © 2023 All rights reserved 22
Slide 23: EBITDA Working
EARNINGS PRESENTATION – Q1 2024 RESULTS EBITDA Working Quarterly & Yearly comparison Q1 23 Q4 23 Q1 24 Amount in AED Mn Amount Amount Amount Net profit/(loss) after tax 80.1 81.8 62.9 Tax 5.0 6.6 11.0 Interest- net 24.8 27.5 27.0 Depreciation & amortization 47.5 49.6 50.6 (Gain) on sale of assets/CW
Slide 24: Thank You
EARNINGS PRESENTATION – Q1 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.com