RAK Ceramics Announces Q2 and Half Yearly 2025 Financial Results

RAK Ceramics PJSC (Ticker: RAKCEC: Abu Dhabi), one of the largest ceramics and porcelain lifestyle solutions provider in the world, today announced its financial results for the second quarter ended 30 June 2025.

Financial highlights

Segmental performance highlights 

•    Tiles revenue continued to grow in Q2, up 10.2% year-on-year to AED 474.3 million, led by strong demand in the UAE, with an increasing contribution from high-margin project and retail channels.

•    Sanitaryware experienced a 3.6% growth in revenue, driven by strong demand in the UAE.

•    Tableware division reported a decline in revenue of 7.9% to AED 84.9 million for Q2 2025. Despite the revenue decline, gross profit margin improved by 380 bps, supported by higher sales to the airline industry and premium hospitality projects.

•    Faucets revenue continued to grow by 11.7% to AED 122.3 million in Q2 2025, mainly driven by performance in Europe, KSA, and Africa.

Tiles & Sanitaryware market highlights

•    UAE: Continued to deliver strong revenue growth, a YoY increase of 26.4% to AED 242.9 million in Q2 2025 from AED 192.2 million primarily driven by the Tiles and Sanitaryware segments and supported by sustained momentum in the real estate sector. 

•    Saudi Arabia: Registered a decline in revenue of 11.4% in Q2 2025 to AED 54.5 million from AED 61.6 million in Q2 2024. Despite the top line pressure, gross profit margin improved by 300 bps, driven by a favorable product mix.

•    Europe: Revenue has remained under pressure attributed to tough macroeconomic conditions, including stagnant growth, persistent inflation and continued recessionary concerns. In Q2 2025, revenue in Europe declined by 3.2% to AED 90.0 million from AED 92.9 million in Q2 2024, and by 10.5% in local currency, driven by weak demand in the UK and Italy.

•    India: India continues to demonstrate resilience, registering moderate revenue growth of 2.0% (2.8% in local currency) to AED 87.6 million in Q2 2025, driven by expansion of the dealer’s network.

•    Bangladesh: Experienced robust growth in revenue of 9.4% (15.6% in local currency) to AED 48.9million in Q2 2025, indicating signs of recovery in the market. However, ongoing political instability continues to disrupt market dynamics and overall economic sentiment.

•    Middle East: Reported strong YoY growth of 33.4% in Q2 2025, reflecting strong demand led by Bahrain, Iraq, and Jordan.

Commenting on the results, Abdallah Massaad, Group CEO, RAK Ceramics said: "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.

Our teams have demonstrated resilience in adapting to local market conditions, leveraging growth opportunities in stable regions and implementing corrective measures where needed. The shift toward high-quality and innovative offerings is strengthening our margin profile and reinforcing our competitive positioning. Our investments in advanced manufacturing capabilities, including upgraded facilities, continue to drive efficiencies and set new benchmarks for quality.

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."

Strategic Highlights

Upgradation projects

•    One of the tile production facility in the UAE, to develop a state-of-the-art slab production facility, commenced commercial production during the quarter. 

•    Upgradation of another tile plant in UAE is under progress and likely to commence commercial product by Q4 2025.

•    Sanitaryware facility in the UAE is in process of upgradation with energy-efficient technologies and enhanced product portfolio, to be commissioned by Q4 2025.

Greenfield projects

•    In KSA, continuing to work towards setting up a production facility

Awards & Recognition

•    Received  ICV Excellence Award at MIITE 2025 by the UAE’s Ministry of Industry & Advanced Technology at the Make It in the Emirates (MIITE) Awards.