Al Anwar Ceramic Tiles Co announces positive third quarter results

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The company reported a significant growth of 7% in gross revenue touching RO6.75m (approximately Dhs675m). The growth was primarily driven by the company's continued strong performance and ability to achieve targets.

'Al Anwar Ceramic Tiles, a DAMAC Holding company, continues to grow solidly and the positive quarterly performance demonstrates our ability to understand and meet the needs of our consumers. Oman is experiencing tremendous economic growth over the last few years. The real estate sector has been performing remarkably as bigger investments are being pumped in following increased demand. As we ramp up our Oman operations and begin to fully realize the benefits of our flexible cost model, we have high expectations for continued long-term growth in regional ceramic sales,' said Chairman DAMAC Holding, Mr. Hussain Ali Habib Sajwani.

'In addition, we continue to remain on track in our overall efforts to improve the product mix and, more importantly, our margins. Our production values, yields and costs have also been in line with our internal estimates,' he added.

Highlights of the third quarter results:

Operations:

•Al Anwar continues to focus on their strategic intent of emerging as the lowest cost producer of ceramic tiles in the region.

Financial:

•Gross revenue has touched RO6.75m signifying a 7% growth.

•The net profit has increased by 25% to RO1.875m. The improvement in profitability was made possible through better sales volumes, higher sales realizations and tight cost management.

Corporate Governance:
The company continues to be in compliance with all the Corporate Governance norms and there are no Governance issues to report during the period under review.

'The demand side continues to be encouraging. We remain steadfast in our objective of achieving cost leadership in the GCC. We are making very satisfactory progress in that direction. The expansion plan to implement the third manufacturing line continues as per plan. Once complete, this will add another 3 million sq. m of production capacity. We expect the project to be complete by May 2008 and trial production to commence immediately thereafter,' stated Sajwani.

'We are all very grateful to His Majesty Sultan Qaboos bin Said for his wise, able and farsighted leadership. We are also grateful to the Government of Oman for all their support and encouragement.'