RAK Ceramics Achieves 6.4% Revenue Growth To AED826.8 Million In Q2 2025

RAK Ceramics PJSC has released its financial outcomes for the second quarter ending 30th June 2025. The company experienced a revenue increase of 6.4% year-on-year, reaching AED826.8 million. For the first half of 2025, revenue rose by 2.9% to AED1.6 billion, driven by strong demand in the UAE and Middle East, coupled with effective cost management strategies.

The company's gross profit margin improved significantly in Q2 2025, rising by 110 basis points to 40.6% compared to the previous year. In the first half of 2025, this margin increased by 70 basis points to reach 40.2%. These improvements were attributed to enhanced operational efficiencies that bolstered RAK Ceramics' market leadership.

EBITDA saw a notable rise of 17.5% in Q2 2025, amounting to AED160.8 million compared to AED136.9 million in the same period last year. For H1 2025, EBITDA grew by 2.9% to AED296.4 million, with EBITDA margins increasing by 1.9% to reach 19.5% in Q2 2025 from 17.6% in Q2 2024.

Profit before tax surged by an impressive 45%, reaching AED86.7 million compared to AED59.8 million in Q2 2024. Net profit after tax also climbed by 30.1%, totalling AED66.4 million against AED51 million in the same quarter last year.

The UAE corporate tax for Q2 2025 was recorded at AED17.2 million, up from AED6.5 million in Q2 2024, reflecting increased profitability across various business segments.

The net debt position rose by AED120.6 million, reaching AED1.56 billion in Q2 2025 compared to the previous quarter, mainly due to heightened capital expenditure and working capital needs.

CEO's Insights on Growth Strategy

Abdallah Massaad, Group CEO of RAK Ceramics, expressed satisfaction with the results: "I'm pleased to report that Q2 2025 delivered solid 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," he added.

Massaad highlighted future plans: "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."

With inputs from WAM