RAK Ceramics (RAKCEC) investor relations material

Executive summary

• Q2 2026 revenue reached AED 822.8 million, with H1 2026 revenue at AED 1.58 billion, reflecting resilience amid regional disruptions and supply chain challenges; revenue was down 0.5% YoY in Q2 and 1.2% YoY in H1.

• Strong demand in the UAE, Saudi Arabia, and Bangladesh offset declines in Europe, India, and Tableware segments, supported by proactive management actions.

• Focused on increasing market share, leveraging local sourcing, alternative logistics, and maintaining reliable supply and service.

• UAE remains the largest market (42% of revenue), followed by Europe (22%), India, Saudi Arabia, and Bangladesh; UAE revenue up 22.7% YoY, KSA up 11.6% YoY, Bangladesh up 20.7% YoY.

• Upgraded UAE sanitaryware facility with energy-efficient technologies and expanded product portfolio; recognized with international design and ESG awards.

Financial highlights

• Q2 2026 gross profit margin improved to 41% (from 40.6% in Q2 2025); H1 2026 margin stable at 40.2%.

• Q2 2026 net profit after tax was AED 68.3 million, up 12.9% YoY; H1 2026 net profit after tax was AED 106.5 million, down 7.6% YoY.

• Q2 2026 EBITDA was AED 157.5 million, down 2.0% YoY; H1 2026 EBITDA was AED 284.8 million, down 3.9% YoY.

• Net debt decreased by AED 41 million to AED 1.52 billion; net debt/EBITDA improved to 2.48x.

• Interim dividend of 10 fils per share (AED 99.3 million) proposed for H1 2026; minimum annual payout of AED 0.20 per share for 2026.

Outlook and guidance

• Expect continued market share gains in UAE, Saudi Arabia, and GCC, supported by import constraints and strong brand positioning.

• Margin expected to be sustained if current conditions persist; management remains positive about normalization and long-term value creation.

• CapEx guidance for 2026 is AED 250–300 million, with AED 100–125 million allocated to the Saudi Greenfield project.

• Effective tax rate for Q3 and full year 2026 expected to remain consistent with H1 2026.

• Management expects continued volatility but sees opportunities for market share gains in core markets.