RAK Ceramics, a leading ceramics brand based in Ras Al Khaimah, has reported a higher second-quarter net profit, supported by demand in the UAE, the Kingdom of Saudi Arabia and Bangladesh despite regional disruptions and higher logistics costs.
Announcing the results for the three-month period ended June 30, 2026, RAK Ceramics said its net profit after tax rose 2.9% year-on-year to AED68.3 million ($18.6 million), while its revenue edged down 0.5% to AED823 million ($224 million).
Gross profit margin improved to 41% from 40.6% a year earlier, while earnings before interest, tax, depreciation and amortisation (ebitda) slipped 2% to AED157.5 million.
For the first half, RAK Ceramics said its revenue fell 1.2% to AED1.58 billion, while net profit declined 7.6% to AED106.5 million. The ebitda decreased 3.9% to AED284.8 million and profit before tax fell 8.3% to AED138.7 million.
The company said strong demand in the UAE, Saudi Arabia and Bangladesh helped offset the impact of regional disruptions, supply chain challenges and higher freight costs, it stated.
The board proposed an interim dividend of 10 fils per share, equivalent to a total distribution of AED99.3 million for the first half of the year.
RAK Ceramics said the group's tiles business, its largest segment, reported a 1.7% increase in quarterly revenue which soared to AED482.5 million, driven by higher sales in the UAE, Saudi Arabia and Bangladesh.
Revenue from sanitaryware fell 6.9% to AED113.1 million, reflecting weaker demand in India, Europe and other export markets. The Emirati group said Faucet sales under the KLUDI brand rose 2.5% to AED125.4 million, while tableware revenue declined 13.3% as weaker tourism and hospitality demand weighed on sales in the UAE and Gulf region.
By market, revenue in the UAE increased 22.7% to AED298.2 million, while Saudi Arabia recorded an 11.6% increase to hit AED60.8 million. The revenue from Bangladesh rose 20.7% to AED59 million.
On the quarterly performance, Group CEO Abdallah Massaad said: "RAK Ceramics delivered a stable Q2 2026 performance despite a challenging quarter marked by regional geopolitical tensions, supply chain disruptions, and elevated logistics costs. Strong demand across the UAE, KSA, and Bangladesh, together with proactive management actions and disciplined execution, helped maintain business continuity and profitability."
Massaad pointed out that throughout this period, RAK Ceramics' priority was clear - increasing its market share across the region, while making every effort to support customers in other markets.
"Backed by our strong brand, product quality, and regional manufacturing footprint, we responded quickly to changing market conditions, leveraging locally sourced raw materials, alternative logistics routes, and other practical solutions to maintain reliable supply and service across our network," he noted.
RAK Ceramics said its European revenue declined 35.7% due to supply disruptions and higher freight costs, while revenue from India fell 15.8%, which the company attributed to temporary production disruptions linked to gas shortages in Morbi.
Net debt stood at AED1.52 billion at the end of June, down 2.6% from a year earlier, while the net debt-to-ebitda ratio improved to 2.48 times from 2.53 times at the end of March, the company said.
On its future outlook, Massaad said: "Looking ahead, we remain focused on driving value-led growth, capturing additional market share opportunities in our core markets, and delivering value creation initiatives across our European, India & Bangladesh operations."
"We remain confident in our ability to deliver sustainable long-term value for our stakeholders," he added.-TradeArabia News Service