R.A.K Ceramics P.J.S.C.

Issuer and reporting perimeter

As of: 2026 / 2026-06-30 / 2026-08-05

R.A.K Ceramics P.J.S.C., commonly branded RAK Ceramics, is the UAE parent traded on ADX under RAKCEC. It was established in Ras Al Khaimah in 1989 and became a public shareholding company in 1991. The consolidated reporting perimeter includes its subsidiaries and interests in equity-accounted investees. The Bangladesh subsidiary is a distinct legal entity; its local listing and standalone results must not be confused with the ADX parent. The group manufactures and sells tiles, bathroom products, sanitaryware, tableware and faucets, alongside ancillary industrial, contracting and property activities.

Products and customers

As of: 4749 / 2025 / 2026 / 2026-06-30 / 2026-08-05

Tiles and porcelain surfaces serve residential and commercial construction and refurbishment. Sanitaryware and faucets extend the offer into coordinated bathroom solutions, while porcelain tableware connects the group to hospitality and food-service demand. Design, product specifications, distribution and reliable delivery influence pricing as well as manufacturing cost. A stronger mix of premium products can support margins even when volumes are under pressure. These customer markets do not move together: hotel demand, homebuilding and renovation can produce different outcomes within the same quarter.

Group, brands and new acquisitions

As of: 2026 / 2025 / 2025-12-31 / 2026-06-30 / 2026-08-05

The 2025 subsidiary schedule includes fully owned RAK Ceramics India Private Limited, RAK Porcelain LLC and Kludi RAK LLC, and a 68.13% interest in RAK Ceramics (Bangladesh) PLC. The wider KLUDI structure includes manufacturing and trading businesses in Europe. The group also has mineral-processing, utility, construction and distribution entities, so the public product lines are not identical to its legal subsidiary structure. In February 2026 its Saudi subsidiary acquired all of Tebra AlArabia in Yanbu to support a planned manufacturing facility. The acquisition accounting, including goodwill, was provisional at the interim reporting date. The ownership percentages above are the annual-report snapshot, not a continuously updated register.

Ownership and a source inconsistency

As of: 4749 / 2025

The 2025 sustainability report identifies Falcon Investment Co. LLC as the largest named shareholder with 20.71% and Al Rajhi Partners LLC with 6.88%. It also identifies the Government of Ras Al Khaimah as a shareholder. However, the report’s ownership overview and its 2025 appendix give different government percentages, so this profile does not assert a reconciled current government stake or calculate a control block. These disclosures are dated to the report’s period, not the current trading day. The inconsistency should be resolved against a dated shareholder register before those figures are used for control or free-float analysis.

Manufacturing footprint and capacity

As of: 4749 / 2025 / 2026 / 2026-06-30 / 2026-08-05

The 2025 sustainability overview describes 23 plants globally and annual capacity of 118 million square metres of tiles and 5.7 million pieces of sanitaryware. Manufacturing and distribution extend across the UAE and overseas markets, with India, Bangladesh and Europe important to the operating footprint. These are capacity disclosures, not actual annual production or evidence of full utilisation. At 30 June 2026 the consolidated carrying amount of property, plant and equipment was AED 1,446.435 million. Investment property of AED 896.500 million is a separate asset category and must not be counted as additional tile-production equipment.

Geography: uneven demand and supply conditions

As of: 2026 / 2026-06-30 / 2026-08-05

The directors’ second-quarter commentary reports stronger tiles and sanitaryware sales in the UAE, Saudi Arabia and Bangladesh, alongside weaker conditions in Europe and India. UAE construction demand supported regional sales, while European supply from the UAE faced disruption and higher export freight costs. In India, industry-wide gas shortages temporarily disrupted production in Morbi, with a restart by June. These market observations relate to tiles and sanitaryware and the second quarter; they should not be represented as a complete geographic breakdown of consolidated half-year revenue. Regional manufacturing provides alternatives, but cannot eliminate logistics or energy exposure.

Latest consolidated financial results

As of: 2026 / 2026-06-30 / 2026-08-05

The table is in AED million and compares six-month periods. The interim information approved on 5 August 2026 received an unmodified review conclusion from KPMG Lower Gulf; review is narrower than an annual audit. The group adopted IFRS 18 early from 1 January 2026 and regrouped the previous-period presentation. The comparison below therefore uses the latest interim statement, not older presentation labels. Net profit includes non-controlling interests; profit attributable to parent owners is shown separately. Neither half-year figure is an annual forecast.

Annual context and operating indicators

As of: 2026 / 2025 / 2025-12-31 / 2026-06-30 / 2026-08-05

For 2025 the annual report recorded revenue of AED 3,284.582 million, group net profit of AED 248.523 million and profit attributable to parent owners of AED 243.716 million. The 2026 directors’ report describes a half-year gross margin of 40.2% and management-reported EBITDA of AED 284.8 million. EBITDA is not net profit or operating cash flow. Useful industrial indicators include utilisation by plant, product and price mix, energy use per unit, scrap and yield, inventories and delivery costs. The cited materials do not establish a complete comparable series for each indicator, so capacity is not used as a substitute for production volume.

Working capital and cash generation

As of: 2026 / 2026-06-30 / 2026-08-05

First-half operating cash inflow was AED 244.167 million. The inventory movement released AED 18.665 million, while trade and other receivables absorbed AED 76.307 million. Cash additions to property, plant and equipment were AED 100.057 million. At period end inventories stood at AED 1,396.591 million and current trade and non-trade receivables at AED 1,045.154 million. These balances tie up funds and expose the group to slow-moving stock, credit losses and delayed project payments. A cash-flow improvement does not remove the need to monitor inventory quality and collection. IFRS presentation and financing cash flows also matter when comparing cash conversion across periods.

Financing and balance-sheet exposure

As of: 2026 / 2026-06-30 / 2026-08-05

At 30 June 2026 current Islamic and interest-bearing financing totalled AED 912.517 million and non-current financing AED 840.793 million, giving AED 1,753.310 million combined; current maturities are already included, not added again. Lease liabilities were separate. Cash and cash equivalents were AED 208.068 million, with restricted cash reported separately. Total assets were AED 5,404.321 million and equity AED 2,353.051 million. The Indian subsidiary issued 10.6% debentures with repayments from December 2027 to June 2029; AED 76.80 million was included in long-term interest-bearing borrowings. Covenant testing begins in December 2026, so the disclosure is not evidence that a future test has already passed.

Strategy and execution priorities

As of: 2026 / 2026-06-30 / 2026-08-05

The directors describe a shift in Saudi sales from volume-led ceramic products toward porcelain and higher-value sales. The Yanbu greenfield tile project was expected to complete in the second quarter of 2027 as of the latest report; this is a target, not a commissioned plant. KLUDI cost optimisation and Cookplay integration support premium bathroom and tableware positioning. Execution depends on construction progress, funding, demand and successful integration. The profile does not treat a project timetable, brand initiative or announced product range as a guaranteed earnings contribution.

Main risks

As of: 2026 / 2026-06-30 / 2026-08-05

Ceramics production depends on fuel availability and kiln economics; freight disruptions can make otherwise competitive exports less attractive. Construction and hospitality cycles influence demand, while currency movements affect overseas results when translated into AED. The Iran subsidiary is subject to hyperinflation accounting, adding measurement complexity beyond ordinary sales growth. Acquisitions and new capacity bring integration and commissioning risks, and investment property adds exposure outside core product sales. The latest regional disruptions affected markets differently, so a claim that operations were uniformly unaffected would be misleading.

Official public contacts

As of: 2026 / 2026-06-30 / 2026-08-05 / 2026-08-31

The registered address is P.O. Box 4714, Al Jazeerah Al Hamra City, Ras Al Khaimah, UAE. The corporate investor website is https://corporate.rakceramics.com/. The public investor-relations mailbox is ir@rakceramics.com and the published IR telephone is +971 7 246 7297. Use the Results & Presentations section for financial reports and the contact page for investor enquiries. Named personal email addresses are omitted. Bangladesh-company contacts should not be substituted for the UAE parent’s investor-relations channel.

Source dates and boundaries

As of: 2026 / 2025 / 2025-12-31 / 2026-06-30 / 2026-08-05 / 4749

The core sources are the 2025 annual report, the 2025 sustainability report and the reviewed first-half 2026 financial information. Ownership percentages remain dated and the inconsistent government percentage is withheld. The confidential-labelled earnings presentation is excluded from the evidential basis. Selected tables and the scanned balance-sheet page were checked against source content; this is not a full independent financial audit. Official reports are linked without republishing their PDFs. Existing dated reviews and repairs remain separate and preserved. No investment recommendation is made.

Sources

1. I · Source I · 2025-12-31
2. H · Source H · 2026-06-30; approved 2026-08-05
3. S · Source S · 2025 reporting period
4. C · Source C · accessed 2026-08-31