RAK Ceramics reported near-flat revenue for the second quarter of 2026, with total sales reaching AED 822.8 million, down 0.5 per cent from AED 826.8 million in the same period last year. For the first half, revenue came in at AED 1,583.5 million, a 1.2 per cent decline year-on-year.
Despite the top-line softness, gross profit margin edged up to 41.0 per cent in Q2, from 40.6 per cent in Q2 2025. Net profit after tax rose 2.9 per cent to AED 68.3 million for the quarter, though the H1 figure declined 7.6 per cent to AED 106.5 million compared to AED 115.2 million a year earlier. EBITDA for the quarter was AED 157.5 million, down 2.0 per cent year-on-year.
“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. Throughout this period, our priority was clear: increasing our 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,” Abdallah Massaad, Group Chief Executive Officer of RAK Ceramics said in a statement.
The board has proposed an interim dividend of 10 fils per share, amounting to AED 99.3 million, for the first half of 2026. Net debt stood at AED 1.52 billion, down 2.6 per cent year-on-year, with a net debt to EBITDA ratio of 2.48x.
Across segments, tiles was the standout, with revenue rising 1.7 per cent to AED 482.5 million on the back of stronger sales in the UAE, Saudi Arabia, and Bangladesh. The UAE market grew 22.7 per cent year-on-year to AED 298.2 million, supported by active real estate and construction demand. Saudi Arabia revenue climbed 11.6 per cent to AED 60.8 million, aided by a strategic shift toward higher-value porcelain products. A greenfield tiles plant in Yanbu is on track for completion by Q2 2027.
Not all segments moved in the same direction. Sanitaryware revenue fell 6.9 per cent to AED 113.1 million, hurt by weaker sales in India and European export markets. Tableware dropped 13.3 per cent to AED 73.6 million, with hospitality demand across the GCC suppressed by ongoing regional conflict. Europe fell sharply, with revenue down 35.7 per cent to AED 57.8 million as conflict-related freight disruptions pushed up logistics costs. India declined 15.8 per cent in dirham terms to AED 73.7 million, though the company attributed much of that to a temporary gas shortage in the Morbi ceramics cluster that caused production stoppages before a recovery in June.
Faucets, sold under the KLUDI brand, grew 2.5 per cent to AED 125.4 million. Bangladesh was another bright spot, with revenue up 20.7 per cent to AED 59.0 million.
“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,” Massaad added.
On the sustainability side, the company said it is upgrading its UAE sanitaryware facility with energy-efficient technologies and carbon reduction measures. RAK Ceramics also picked up Red Dot, iF Design, and German Brand Awards during the quarter across its main product lines.
