Bathroom and tile brand RAK Ceramics reported record financial results for the year ended 31 December 2022.

The company achieved a turnover growth of 22.9% to AED 3.52 billion, the highest since 2009, and an historically high full year net profit increase of 19.8% to AED340.1 million, versus 2021.

Growth was driven by an increase of 11% in  tiles, sanitaryware which grew by 4.1%, tableware which was up by 38.9% and the consolidation of faucets (+AED 276.5 million).

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In Europe, revenue increased by 3.5% year-on-year in 2022, while in local currency it increased by 14.5% year-on-year.

Given the slowdown in economic activity and despite price increases in 2022, RAK Ceramics stated the macroeconomic pressure weighed in on bottom-line performance; Q4 2022 financials.

However, the company stated it saw signs of relief, enabled by correction in exchange rates and decrease in freight rates.

During its financial results, RAK Ceramics also reported on the development of the company, with its tile enhancement project in progress and production set to begin in Q1 2023 for 5 million square meters of GP tiles.

The sanitaryware capacity enhancement has also been completed and production has commenced, with full additional capacity of 260,000 pieces by Q3 2023.

In addition, the company has acquired land for its Tiles and Faucet Greenfield project in Q2 2022, in Bangladesh and is working on shortlisting consultants and preparing the factory design layout.

Commenting on the results, Abdallah Massaad, Group CEO, RAK Ceramics said: “I am delighted to share our company’s performance for the year 2022.

“Notwithstanding the current macro-economic conditions marked by high inflation and persistent energy crisis, we have managed to achieve remarkable results.”

He continued: “Despite the challenging economic environment, we have managed to maintain our gross profit margin level, mainly due to our improved production efficiencies and optimised utilisation in 2022.

Looking at the future market, Abdallah Massaad commented: “We are monitoring the economic environment closely and remain focused on executing our growth strategy.”