RAK Ceramics (RAKCEC) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue rose 6.4% YoY to AED 826.8M, with net profit after tax up 30.1% YoY to AED 66.4M and EBITDA up 17.5% YoY to AED 160.8M, driven by strong UAE and Middle East demand.

• H1 2025 revenue reached AED 1.60BN, up 2.9% YoY, with net profit after tax at AED 115.2M, up 1.2% YoY.

• Interim dividend of 10 fils per share (AED 99.3M) proposed for H1 2025.

• Growth was led by UAE, India, Bangladesh, and Middle East, while KSA and Europe faced challenges.

• Gross profit margin improved by 110bps YoY to 40.6% in Q2 2025.

Financial highlights

• H1 2025 revenue up 2.9% YoY to AED 1.6BN; gross margin up 70bps to 40.2%.

• Q2 2025 profit before tax was AED 86.7M, up 45.0% YoY; H1 2025 profit before tax was AED 151.2M, up 13.1% YoY.

• Net debt increased to AED 1.56BN due to higher capex and working capital; net debt to EBITDA at 2.59x.

• Capex spending in H1 2025 was AED 156.2M, up 60.5% YoY, with guidance for 2025 revised to AED 300-350M.

• H1 2025 EBITDA increased 2.9% to AED 296.4M; EBITDA margin at 18.5%.

Outlook and guidance

• Focus on market share growth, retail expansion, digital acceleration, and innovation.

• KLUDI transformation, production capability enhancements, and advanced manufacturing are key priorities.

• Dividend policy targets a minimum payout of 20 fils per share semi-annually for FY 2025, with a minimum of 60 fils over 2025-2027.

• Management expects ongoing profitability and resilience despite macroeconomic challenges.