RAK Ceramics posted a modest profit rise in Q2 2026.
The Ras Al Khaimah‑based group announced that net profit after tax grew 2.9% year‑on‑year to AED68.3 million ($18.6 million) for the three months ended 30 June 2026. Revenue slipped 0.5% to AED823 million ($224 million), while the gross profit margin improved to 41% from 40.6% a year earlier. EBITDA fell 2% to AED157.5 million.
RAK Ceramics delivered a stable Q2 2026 performance despite a challenging quarter marked by regional geopolitical tensions, supply chain disruptions, and elevated logistics costs.
— Abdallah Massaad, Group CEO
Financial Summary
For the first half of the year, total revenue declined 1.2% to AED1.58 billion, and net profit dropped 7.6% to AED106.5 million. EBITDA decreased 3.9% to AED284.8 million and profit before tax fell 8.3% to AED138.7 million. The board proposed an interim dividend of 10 fils per share, amounting to a total distribution of AED99.3 million for the half‑year.
Net debt stood at AED1.52 billion at the end of June, down 2.6% from a year earlier, and the net‑debt‑to‑EBITDA ratio improved to 2.48 times from 2.53 times at the end of March.
Segment Performance
The tiles division, the company’s largest segment, recorded a 1.7% rise in quarterly revenue to AED482.5 million, buoyed by stronger sales in the UAE, Saudi Arabia and Bangladesh. Sanitaryware revenue fell 6.9% to AED113.1 million, reflecting weaker demand in India, Europe and other export markets.
Faucet sales under the KLUDI brand grew 2.5% to AED125.4 million, while tableware revenue slipped 13.3% as softer tourism and hospitality demand weighed on sales across the Gulf region.
Market Outlook
Revenue in the UAE surged 22.7% to AED298.2 million, and Saudi Arabia saw an 11.6% increase to AED60.8 million. Bangladesh contributed a 20.7% rise, reaching AED59 million.
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.
— Abdallah Massaad, Group CEO
European revenue declined 35.7% due to supply disruptions and higher freight costs, while Indian revenue fell 15.8% amid temporary production disruptions linked to gas shortages in Morbi.
Frequently asked questions
What was RAK Ceramics' net profit for Q2 2026?
RAK Ceramics reported a net profit after tax of AED 68.3 million (approximately $18.6 million) for the quarter ended 30 June 2026, a 2.9% year‑on‑year increase.
How did revenue change in Q2 2026?
Revenue slipped 0.5% to AED 823 million ($224 million) in Q2 2026 compared with the same period a year earlier.
Which markets drove the profit increase?
Higher sales in the UAE, Saudi Arabia and Bangladesh boosted the profit, with UAE revenue rising 22.7%, Saudi Arabia up 11.6% and Bangladesh up 20.7% year‑on‑year.
What dividend did RAK Ceramics propose for the half‑year?
The board proposed an interim dividend of 10 fils per share, amounting to a total distribution of AED 99.3 million for the half‑year.
