RAK Ceramics’ loss widens sharply in 2025

RAK Ceramics (Bangladesh) Ltd reported a sharp rise in net loss for the year ended December 31, 2025, as higher finance costs eroded profitability despite double-digit revenue growth.

The ceramic tiles manufacturer posted a net loss of Tk 39.59 crore in 2025, up significantly from Tk 2.73 crore a year earlier, according to a price-sensitive information (PSI) disclosure.

The company reported a consolidated loss per share of Tk 0.93 for 2025, compared with a loss per share of Tk 0.06 in 2024.

During the year, RAK Ceramics achieved revenue growth of 10.56 percent, with turnover rising to Tk 737.33 crore from Tk 666.95 crore in the previous year.

The growth was mainly driven by higher production volumes, supported by uninterrupted liquefied natural gas (LNG) supply from July 2025 onwards, which boosted market sales, the company said.

The gross profit margin declined sharply, from 17.19 percent in 2024 to 13.19 percent in 2025.

The fall in margin was primarily due to higher manufacturing costs arising from increased throughput costs, according to the PSI.

The margin was further pressured by unabsorbed fixed costs incurred up to June 2025 because of gas supply disruptions.

In addition, finance expenses rose as the company relied more on bank borrowings to meet working capital requirements. Increased provisions and write-offs of aged inventory also weighed on earnings, the disclosure said.

The ceramics manufacturer reported improved trade receivable collections during the year, supported by a strengthened credit control framework and successful renegotiation and extension of payment terms with vendors where feasible.

As a result, net operating cash flow per share improved to Tk 1 in 2025 from Tk 0.49 a year earlier.

The board of directors of the company has recommended a 10 percent cash dividend for general shareholders for the year ended December 31, 2025, unchanged from the previous year.

According to Dhaka Stock Exchange data as of December 31, 2025, sponsors and directors held 72.08 percent of the company’s shares, while institutional investors owned 17.14 percent, foreign investors 0.16 percent and the public 10.62 percent.