RAK Ceramics, the Ras Al Khaimah-based global ceramic major, has posted a net profit of Dh270.2 million ($73.5 million) for the year 2010, registering a 3.2 per cent increase from Dh261.9 million in 2009.

The annual general assembly meeting of RAK Ceramics held at Hotel Al Hamra Fort approved a 10 per cent bonus share issue to the shareholders.

The meeting was chaired by Sheikh Mohammed bin Saud bin Saqr Al Qasimi, Crown Prince of Ras Al Khaimah and chairman of RAK Ceramics.

The company managed to increase the net profit despite a 11.5 per cent drop in consolidated revenue to Dh3.33 billion in 2010 from Dh3.77 billion in 2009, mainly due to the slump in the construction sector.

The meeting also approved the appointment of Dr Khater Massaad as a member of the board of directors.

Dr Khater Massaad, who is also the CEO of RAK Ceramics, said that the company has consolidated its position as the largest global ceramic tiles manufacturing group with global sales of 101.8 million sq m of tiles and 3.97 million pieces of sanitary ware in 2010.

'This was achieved amid extremely challenging global and regional economic and industry environment and were made possible as a result of the company’s relentless pursuit of strategic and financial initiatives,' he added.

Assets up 12pc
Dr Massaad said the consolidated current assets increased by 12 per cent to reach Dh3.5 billion in 2010 and RAK Ceramics was also able to reduce its net debt by 25 per cent during 2009-10.

'In 2010 the company leveraged its export relationships in over 121 countries in its core ceramic markets and continued to foster growth of investments made in related businesses,' Dr Massaad added.

On the outlook for 2011, the report pointed out to opportunities in the growing Saudi housing demand and the rebuilding efforts in Iraq as well as the regional cash surplus and economic development opportunities following the oil price recovery.