RAK Ceramics has reported a 10.2% increase in its annual profits, which rose to AED 310.3 million ($84.4m) in 2015.

The UAE-based ceramics manufacturer says the growth in its profits was driven by enhancements in its core business and a turnaround of its non-core business activities.

RAK Ceramics’ core businesses include tiles, sanitary-ware, faucets and tableware in key markets like the GCC, India and Bangladesh.

Overall gross margins also saw an increase of 230 basis points to 28.2%, while gross margins from its core business rose to 29.3% from 28.4% in 2014, the company said.

This growth was driven by an increase in tile margins by 20 basis points from the previous year due to a wider range of offered products, coupled with a greater contribution from the high-margin sanitary-ware core business, as well as tableware.

The company also announced that its board of directors has approved a cash dividend of 30% along with a stock dividend of 5%.

In terms of its capital expenditure, a total AED 305 million was primarily spent on expanding core businesses, enhancing technology and modernising equipment.

Going forward the company has planned expansions of its tile capacities in Bangladesh and sanitary-ware in the UAE in the first quarter of this year.

“We are aware of the economic and geopolitical factors that will continue to challenge our business in 2016 and may impact our performance, but we are confident that we have the right mechanisms and measures in place to mitigate those risks,” said Abdallah Massaad, RAK Ceramics’ Group Chief Executive.

“As we have wrapped up a strong 2015, we look forward to an even stronger 2016 driven by positive momentum and strategic investments made this year.”