Dubai Refreshment Company

1. Company Overview & Earnings Context

Dubai Refreshment PJSC (DRC) reported improved Q1 2026 profitability, supported by higher domestic sales, stronger gross margins, and continued demand across its beverage and consumer products portfolio in the UAE market.

The company continued benefiting from stable local market demand while maintaining strong liquidity and investment balances during the quarter.

2. Financial Performance Snapshot

• Revenue: AED 239.4M (vs AED 264.2M YoY)

• Gross profit: AED 86.5M (+17% YoY)

• Operating profit: AED 38.9M (+32% YoY)

• Profit before tax: AED 43.7M (+32% YoY)

• Net profit: AED 39.9M (+32% YoY)

• Earnings per share (EPS): AED 0.44 (vs AED 0.34 YoY)

3. Operational Highlights & Key Metrics

• Domestic UAE revenue: AED 222.6M

• Export revenue: AED 16.7M

• Excise tax: AED 39.9M

• Cost structure:

• Material cost: AED 95.4M

• Staff cost: AED 6.0M

• Depreciation: AED 6.0M

• Balance sheet & liquidity:

• Total assets: AED 1.55B

• Total equity: AED 1.19B

• Cash & bank balances: AED 504.5M

• Cash & cash equivalents: AED 154.8M

• Inventories: AED 135.0M

• Investment portfolio:

• Investment securities: AED 88.2M

• Bonds at FVTOCI: AED 4.9M

• Operating cash flow: AED 12.3M

4. Key Performance Drivers

• Improved gross margins supporting profitability growth

• Strong domestic UAE sales contribution

• Higher operating efficiency and stable cost management

• Strong interest income and investment income contribution

• Lower revenue compared to prior year partially impacted by excise tax and sales mix changes

• Stable liquidity and investment portfolio supporting financial position

5. Outlook & Forward Guidance

• Continued focus on strengthening domestic beverage market operations

• Management remains focused on operational efficiency, supply continuity, and customer demand trends

• The company continues monitoring regional geopolitical developments and supply chain conditions across the Gulf region

• Management stated that no material impact on asset carrying values was identified during the quarter despite ongoing regional uncertainty

6. ???? Investor Takeaway

Dubai Refreshment delivered stronger Q1 2026 profitability despite lower revenue, supported by improved margins, stable domestic demand, disciplined cost management, and strong liquidity, reinforcing the company’s resilient beverage and consumer products business model in the UAE market.