13/05/2026 05:04 AST
RAK Ceramics, one of the world's leading ceramics brands, delivered a resilient first-quarter performance in 2026, supported by robust demand across the UAE and Bangladesh.
Total revenue was AED760.7 million, down 2% compared to AED776.5 million ($211.44 million) in Q1 2025 and gross profit margin remained resilient at 39.4%, compared to 39.7% in Q1 2025.
In Q1 2026, profit before tax declined by 17.9% YoY to AED53 million, compared to AED64.5 million in Q1 2025. Net profit after tax decreased by 21.8% YoY to AED38.2 million, from AED48.9 million in Q1 2025.
EBITDA declined by 6.1% to AED127.3 million from AED135.6 million in Q1 2025. Net debt position stood at AED1.56 billion, up 8.5% YoY, mainly due to the annual dividend payment of AED99.4 million in the UAE in Q1 2026. Net debt to EBITDA stood at 2.53x from 2.40x in December 2025.
The company successfully met market demand despite ongoing regional geopolitical tensions, supply chain disruptions, and elevated logistics costs, it said.
As a local manufacturer, RAK Ceramics benefited from its operational agility and ability to adapt quickly to changing market conditions. By reformulating its sourcing strategy with a greater focus on locally sourced raw materials, the company was able to secure uninterrupted supply for clients and partners across its network while effectively mitigating supply chain disruptions and absorbing market shocks.
Proactive management actions and disciplined execution ensured operational continuity, consistent product availability, and dependable service across key markets, sustaining strong customer confidence. During this period, RAK Ceramics further reinforced its position as a reliable industry player, consistently delivering on its commitments despite a challenging operating environment.
Commenting on the performance, Abdallah Massaad, Group Chief Executive Officer of RAK Ceramics, said: "Despite a challenging quarter marked by macroeconomic uncertainty, geopolitical tensions, and supply chain disruptions, RAK Ceramics delivered resilient results, supported by its diversified operations and strong regional footprint. Proactive management actions and supply chain optimization ensured product availability and reliable service across markets.
"Demand in the UAE and Saudi Arabia remained strong, driven by construction activity and higher project contributions. As a local manufacturer, our UAE operations continue to benefit from national initiatives such as "Make it in the Emirates" and a robust industrial ecosystem.
"We remain focused on executing our strategic priorities, including Cookplay brand integration and value creation across our European, India, and Bangladesh operations. While market conditions remain dynamic, we are well positioned to navigate near-term challenges and deliver sustainable long-term value for our stakeholders," he said.
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