UAE sales surge 22.7% as RAK Ceramics reports Dh822.8 million group revenue.
Dubai: RAK Ceramics’ board has proposed an interim dividend of 10 fils per share for the first half of 2026, following a 2.9% rise in the company’s second-quarter net profit.
The proposed dividend payout totals Dh99.3 million and is subject to approval by shareholders.
Net profit after tax rose to Dh68.3 million in the three months ended June 30, compared with Dh66.4 million in the same period last year, supported by stronger demand in the UAE, Saudi Arabia, and Bangladesh.
Group revenue declined slightly by 0.5% to Dh822.8 million from Dh826.8 million, while gross profit margin improved to 41% from 40.6%. The increase was driven by higher sales in the UAE and Bangladesh, along with a more favourable product mix.
“RAK Ceramics delivered a resilient second-quarter performance despite a challenging period affected by regional geopolitical developments, supply chain disruptions, and higher logistics costs. Strong demand in the UAE, Saudi Arabia, and Bangladesh, combined with proactive measures and disciplined execution, helped the company maintain operational continuity and profitability,” said Abdallah Massaad, Group CEO of RAK Ceramics.
UAE sales rise 22.7%
Revenue from the UAE market increased 22.7% year on year to Dh298.2 million, supported by continued activity in the real estate and construction sectors.
The company said disruptions affecting imports during the period created an opportunity to strengthen its market position in the UAE.
Revenue from Saudi Arabia rose 11.6% to Dh60.8 million, driven by a shift from higher-volume ceramic products towards Gres Porcelain offerings.
RAK Ceramics is continuing work on its greenfield tile manufacturing project in Yanbu, Saudi Arabia, with completion expected in the second quarter of 2027.
Revenue from Bangladesh increased 20.7% to Dh59 million, supported by steady domestic demand despite the impact of the Eid holidays in May.
“Throughout this period, our focus remained on expanding our market share across the region while continuing to support customers in other markets,” Massaad said.
“Supported by our strong brand, product quality, and regional manufacturing capabilities, we adapted quickly to changing market conditions by using locally sourced raw materials, alternative logistics solutions, and other practical measures to ensure reliable supply and service across our network.”
Tiles revenue grows
Revenue from RAK Ceramics’ Tiles segment increased 1.7% to Dh482.5 million, supported by stronger sales in the UAE, Saudi Arabia, and Bangladesh.
Revenue from faucets under the KLUDI business rose 2.5% to Dh125.4 million, driven by improved sales across most markets, although performance in Asia and Africa was affected by regional conflicts.
Sanitaryware revenue declined 6.9% to Dh113.1 million, mainly due to weaker sales in India, Europe, and other export markets.
Tableware revenue declined 13.3% to Dh73.6 million, as regional conflicts affected hospitality and tourism demand across the UAE and other Gulf markets. Export demand remained resilient, while the integration of Cookplay continued during the quarter.
Europe and India sales decline
Revenue from Europe decreased 35.7% to Dh57.8 million, impacted by supply disruptions from the UAE and higher export freight costs.
RAK Ceramics relied on existing inventory levels to maintain service continuity and support customers in the European market during the period.
Revenue from India fell 15.8% to Dh73.7 million, although the decline was limited to 6.4% in local currency terms. The performance was affected by a temporary production disruption caused by industry-wide gas shortages in Morbi, with operations resuming by June.
Revenue from the Middle East, excluding the company’s separately reported core markets, declined 5.8% to Dh35.4 million due to softer regional demand.
First-half profit declines 7.6%
RAK Ceramics’ revenue for the first half of 2026 decreased 1.2% to Dh1.58 billion, compared with Dh1.60 billion in the same period last year.
Net profit after tax fell 7.6% to Dh106.5 million from Dh115.2 million, while profit before tax declined 8.3% to Dh138.7 million.
First-half EBITDA decreased 3.9% to Dh284.8 million, while the gross profit margin remained stable at 40.2%.
Second-quarter EBITDA declined 2% to Dh157.5 million, while profit before tax fell 1.1% to Dh85.7 million.
Net debt stood at Dh1.52 billion at the end of June, down 2.6% compared with the previous year. The net debt-to-EBITDA ratio improved to 2.48 times from 2.53 times in March.
RAK Ceramics is also advancing the upgrade of its UAE sanitaryware facility, introducing energy-efficient technologies, expanding its product portfolio, and implementing measures to reduce carbon emissions.
