RAK Ceramics posts solid Q2 growth; revenue soars to $435m

14/08/2025 05:02 AST

RAK Ceramics, a leading ceramics and porcelain lifestyle solutions provider, has announced solid results for the first half with its total revenue soaring to AED1.6 billion ($435 million), up 2.9% over last year.

Announcing the financial results for the six-month period ended June 30, 2025, the Ras Al Khaimah-based industrial group said its gross profit margin increased by 70bps to 40.2%, driven by enhanced operational efficiencies which have contributed to higher gross profit margin, reinforcing its market leadership.

RAK Ceramic said its ebitda too for the first half increased by 2.9% to AED296.4 million, while its ebitda margin remained consistent at 18.5%.

Its profit before tax in H1 increased by 13.1% to AED151.2 million from last year's figure of AED133.7 million, while its net profit after tax grew 1.2% YoY to AED115.2 million, compared to AED113.9 million last year.

On its financial performance in Q2, RAK Ceramics said it has been strong, demonstrating the resilience of the business in the face of a tough macro-economic environment.

Total revenue increased by 6.4% YoY to AED826.8 million as a result of strong demand from the UAE and Middle East as well as effective cost management, it stated.

In Q2 2025, the gross profit margin increased by 110bps to 40.6% YoY, while its ebitda rose 17.5% to AED 160.8 million compared to AED136.9 million in the same period last year.

The Emirati group's ebitda margins grew by 1.9% to 19.5%, up from 17.6% in Q2 last year.

According to RAK Ceramics, the profit before tax increased by 45% YoY to AED86.7 million, compared to AED59.8 million last year, while the net profit after tax surged by 30.1% YoY to AED66.4 million, compared to AED 51 million in Q2 last year.

Net debt position rose by AED120.6 million to reach AED 1.56 billion in Q2 2025, compared to Q1 2025, primarily driven by increased capital expenditure and working capital requirements, it added.

The Ras Al Khaimah-based industrial major said its tiles revenue continued to grow in Q2, up 10.2% year-on-year to AED474.3 million, led by strong demand in UAE, with an increasing contribution from high-margin project and retail channels.

Its faucets revenue continued to grow by 11.7% to AED122.3 million in Q2 2025, mainly driven by performance in Europe, KSA, and Africa.

On the sanitaryware sector, the group said it had experienced a 3.6% growth in revenue, driven by strong demand in the UAE.

However, its tableware division reported a decline in revenue of 7.9% to AED 84.9 million for Q2 2025.

Despite the revenue decline, gross profit margin improved by 380 bps, supported by higher sales to the airline industry and premium hospitality projects, it added.

Impressed with results, the board of directors have proposed an interim dividend distribution of 10 fils per share (AED99.4 million) for H1.

On its robust performance, Group CEO Abdallah Massaad said: "We have delivered solid Q2 revenue growth alongside strong operational performance, a reflection of the strength and adaptability of RAK Ceramics across the globe."

"Our ability to drive both volume and value growth in key markets, while successfully navigating regional headwinds, further underscores the effectiveness of our diversified strategy. Our teams have demonstrated resilience in adapting to local market conditions, leveraging growth opportunities in stableregions and implementing corrective measures where needed," stated Massaad.

"The shift toward high-quality and innovative offerings isstrengthening our margin profile and reinforcing our competitive positioning. Our investments in advanced manufacturing capabilities, including upgraded facilities, continue to drive efficiencies and set new benchmarks for quality," he noted.

"Looking forward, we're continuing to innovate our operations and accelerate initiatives that will strengthen our position in the market and continue to drive profitability across all divisions," he added.

Trade Arabia