RAK Ceramics Proposes Dividend Amid Profit Growth

Aug 6, 2026

70 min

Aug 6, 2026 06:31

RAK Ceramics proposes 10 fils dividend after Q2 profit rises 2.9%

## Profit and Dividend Announcement

RAK Ceramics has announced a 2.9% increase in net profit for the second quarter of 2026, reaching Dh68.3 million. In response, the board has proposed an interim dividend of 10 fils per share, totaling Dh99.3 million, pending shareholder approval.

## Revenue and Market Performance

Despite a slight decline in group revenue by 0.5% to Dh822.8 million, the company saw a significant 22.7% increase in UAE sales, reaching Dh298.2 million. This growth was driven by strong demand in the real estate and construction sectors. Revenue in Saudi Arabia and Bangladesh also rose, with increases of 11.6% and 20.7%, respectively.

## Segment Analysis

The Tiles segment saw a 1.7% revenue increase to Dh482.5 million, while the Faucets segment grew by 2.5% to Dh125.4 million. However, the Sanitaryware and Tableware segments experienced declines due to reduced sales in certain regions.

## Challenges and Strategic Moves

RAK Ceramics faced challenges such as geopolitical tensions and supply chain disruptions but managed to maintain stability through strategic management and leveraging local resources. The company is also advancing its greenfield tile project in Yanbu, expected to complete by mid-2027.

## Financial Overview

For the first half of 2026, the company's net profit fell by 7.6% to Dh106.5 million, with revenue slightly down by 1.2% to Dh1.58 billion. The company is working on upgrading its UAE sanitaryware facility to enhance energy efficiency and reduce carbon emissions.

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