RAK Ceramics announces first-half growth

Results were driven by an excellent second quarter, thanks to strong demand in the Middle East and domestic markets. The new slab line was successfully commissioned in May.

Confirming its position as one of the world’s leading producers of ceramic tiles, sanitaryware, bathroom fittings and tableware, RAK Ceramics closed the first half of 2025 with solid growth in both revenue and profitability. Results were driven by an excellent second quarter, in which the UAE-based group delivered standout performances thanks to strong demand in the Middle East and domestic markets, supported by improved operational efficiency and effective cost management.

Between April and June, revenue rose by 6.4% compared to Q2 2024, reaching AED 826.8 million (around €192 million). Gross profit margin climbed to 40.6%, EBITDA grew by 17.5% and EBITDA margin improved to 19.5%. Profit before and after tax rose by 45% and 30% year on year, respectively.

In the first half of the year, total revenue rose to AED 1.6 billion (more than €372 million), up 2.9% on H1 2024. Gross profit margin increased to 40.2% of revenue. EBITDA reached around €69 million (AED 296.4 million, +2.9%), remaining steady at 18.5% of revenue. Profit before tax rose by 13% to AED 151 million (more than €35 million) and net profit by 1.2% year on year to AED 115 million (around €27 million).

Strong performance across all product lines

All the group’s divisions contributed to its positive second-quarter performance. Tile segment revenue, which accounts for 57% of total sales, grew by 10% year on year, driven by robust demand in the UAE and growing contributions from higher-margin channels such as projects and retail. The buoyant domestic market also underpinned a 3.6% increase in Sanitaryware segment sales, while stronger results in Europe, Saudi Arabia and Africa boosted Faucets revenue by 11.7%. The Tableware division reported a 7.9% decline in revenue but saw an improvement in gross profit margin thanks to higher sales to the airline industry and premium hospitality projects.

Geographical performance

Europe, the Middle East and Asia remain the group’s core markets.

In Q2, the domestic market delivered the strongest results, accounting for 29.3% of revenue with a 26.4% increase year on year.

Other Middle Eastern markets also saw robust growth (+33.4%), reflecting strong demand in Bahrain, Iraq and Jordan. Sales in Saudi Arabia declined by 11.4%, although gross profit margin improved, driven by a favourable product mix. Here, feasibility studies are underway for the construction of a local manufacturing facility, underlining the strategic importance of the Saudi market for RAK Ceramics.

Europe saw a contraction in sales (-3.2% in the quarter, or -10.5% in local currency), penalised by stagnant growth, persistent inflation and recessionary concerns. Demand was especially weak in the UK and Italy.

In India and Bangladesh, where RAK Ceramics operates its own production facilities, results were more positive. India recorded moderate growth (+2%, or +2.8% in local currency) thanks to an expanding distributor network, while Bangladesh achieved stronger growth (+9.4%, or +15.6% in local currency). But despite these encouraging signs, political instability continues to disrupt market dynamics and overall economic sentiment in Bangladesh.

Commenting on the results, Abdallah Massaad, Group CEO of RAK Ceramics, noted that the group’s revenue growth and strong operational performance reflect its strength and adaptability worldwide.

“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,” commented Massaad. “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.”

Investments include a new slab manufacturing facility

In the first half of 2025, RAK Ceramics made capital investments totalling AED 156.2 million (more than €36 million), up 60.5% compared to H1 2024.

The most significant project was the commissioning in May of a state-of-the-art facility with annual capacity of 4 million sqm dedicated to the production of slabs in sizes up to 180x360 cm and with thicknesses ranging from 6 mm to 20 mm. Developed in partnership with Sacmi, the facility is equipped with a Continua+ PCR 2180, a 300-metre kiln (the longest in operation in the Middle East), digital glazing technologies and automated quality control solutions. Designed for maximum efficiency and sustainability, the new seven-layer horizontal dryer is powered by heat recovered from the kiln, while the automated packaging line uses shrink-hood wrapping.

Two further upgrade projects are also under way at the Ras Al Khaimah headquarters – one for tiles and the other for sanitaryware production – both scheduled for completion by Q4 2025.