RAK Ceramics (Bangladesh) Ltd., one of the renowned ceramic brands in Bangladesh has recently posted its half-yearly financial statement for the year 2021. Revenue of the company increased to Tk 3,268.7 million in H1’21 from Tk 1,972.3 million in H1’20. The profit of the company also grew from a Loss of Tk 36.8 million to Tk 435.6 million profit.
Revenue & Gross Profit Analysis
Revenue of RAK Ceramics (Bangladesh) Ltd grew by 65.7% YoY to Tk 3,268.7 million in H1’21. This is mainly due to 205.0% YoY revenue growth in Q2’2021 (Apr-Jun). In Q2’2021 revenue of the company was Tk 1,535.0 million which was Tk 503.2 million in Q2’2020. The huge growth in the 2nd quarter is mainly due to the recovery of sales in 2021 from the pandemic situation in 2020.
During Q2’2020, we had a countrywide lockdown due to Covid-19 for which impacted the sales of the company. Revenue wasn’t impacted in the 2nd phase of lockdown in Q2’2021 since most of the stores were open for business.
Gross Profit grew by 243.6% YoY mainly driven by higher sales and gross profit margin than the same period last year. The Gross Profit margin also recovered from the same period last year due to normalcy in business activities in the first six months of 2021.
Profit Analysis
Profit after tax increased by Tk 472.3 million from the same period last year. Operating Profit increased by Tk 617.0 million to Tk 559.3 million in H1’21 from Operating loss of Tk 57.7 million in H1’20. Profit increased mainly due to higher sales and gross profit compared to the same period last year.
Future Ahead
In the first six months of 2021, RAK Ceramics grew mainly due to the normalcy of the business environment and higher consumer spending compared to the same period last year. However, since June 2021 Bangladesh is facing the deadliest phase of Covid-19. Most of the stores are now closed due to the 3rd phase of lockdown. Hence, we expect the revenue of RAK Ceramics will be negatively impacted due to the lockdown.
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