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Earnings Report

RAK Ceramics

Q1 26 NEUTRAL LOW Impact

1. Company Overview & Earnings Context

RAK Ceramics PJSC reported its Q1 2026 results, delivering a resilient performance despite regional disruptions, supported by strong demand in key markets like the UAE and Bangladesh and proactive operational management.

2. Financial Performance Snapshot

  • Revenue: AED 760.7M (−2.0% YoY)

  • EBITDA: AED 127.3M (−6.1% YoY)

  • Gross margin: 39.4%

  • Profit before tax: AED 53.0M (−17.9% YoY)

  • Net profit: AED 38.2M (−21.8% YoY)

3. Operational Highlights & Key Metrics

  • Segment performance:

    • Tiles: AED 431.2M (−3.9% YoY)

    • Sanitaryware: AED 107.4M (+1.8% YoY)

    • Faucets: AED 123.1M (+10.2% YoY)

    • Tableware: AED 78.7M (−8.4% YoY)

  • Geographic highlights:

    • UAE: AED 211.5M (+0.5% YoY)

    • Europe: AED 78.1M (+1.3% YoY)

    • Bangladesh: AED 51.9M (+18.8% YoY)

    • India: AED 79.4M (−8.5% YoY)

    • KSA: AED 63.1M (−8.7% YoY)

  • Balance sheet & leverage:

    • Net debt: AED 1.56B

    • Net debt / EBITDA: 2.53x

4. Key Performance Drivers

  • Strong demand in UAE and Bangladesh, supporting overall resilience

  • Product mix optimization, helping maintain margins

  • Growth in faucets segment, offsetting weakness in other categories

  • Operational agility, including supply chain adjustments and local sourcing

  • Cost pressures and disruptions, including logistics, energy, and geopolitical factors

5. Outlook & Forward Guidance

  • Focus on:

    • Capturing market share in UAE and GCC markets

    • Optimizing costs and improving operational efficiency

    • Expanding premium product offerings (e.g., KLUDI brand)

    • Executing greenfield expansion in KSA (Yanbu project)

  • Near-term outlook impacted by:

    • Ongoing regional geopolitical tensions

    • Higher logistics and energy costs

    • Potential softness in demand due to project delays

6. 🧾 Investor Takeaway

RAK Ceramics delivered a resilient Q1 2026 despite revenue and profit pressure, supported by strong regional demand, diversified operations, and disciplined execution, positioning the company to navigate short-term challenges while maintaining long-term growth potential.