Arab Ceramic

Production of sanitary ware, ceramics & related products. Produces for local & foreign markets. Plan to renovate & develop production lines for tile factory aiming at increasing production capacity to 9.66M m2 at a cost of EGP20M. The company benefits from geographic-based production cost advantages versus its international peers. As such, exports accounted for c.35% of total sales in 2010. Tile exports to the Gulf region accounted for c.22% of CERA FY09 total sales, while sanitary ware exports to Eastern Europe accounted for c.10% of FY09 revenues.
Financial Performance:
In February 2011, CERA released its FY10 financial results, recording a strong 46.8% YoY increase in net profit to LE 111.4mn vs. EGP 75.9mn FY09, as new tile capacity came on stream. In its AGM on March 21, CERA approved both its FY10 financials and shareholder cash dividends of EGP75mn (EGP3/share), implying a dividend yield of 12.4%, with an Ex. dividend date of 7 April 2011 and pay out date of 12 April 2011. On May 10th, CERA reported its 1Q11 financial results, posting an 18% YoY decline in net profit to LE 18.3mn, compared to a net profit of EGP 31.7mn in 1Q10. The double-digit decline was nevertheless expected as sales witnessed sharp disruption during Egypt.s 18-day uprising and consumer confidence remained low over the quarter.