Saudi Ceramics CEO Al-Mudaihim said Q2 demand was highest in five years, led by tiles and water heaters. Q3 seen in normal ranges as construction pace adjusts.
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Saudi Ceramic Co. expects demand in the third quarter to fall back within normal seasonal ranges after the second quarter delivered the strongest sales growth in five years, Chief Executive Officer Azzam Al-Mudaihim said.
Al-Mudaihim told Argaam that Q3 demand will continue to be influenced by the pace of project execution and spending in the construction and housing sectors, as well as consumer demand. Product prices should remain in line with prevailing market levels, he said.
The Q2 growth rates were the highest compared with the same period in the last five years, the CEO said, reflecting the company's success in strengthening customer confidence through product quality and diverse designs. Tiles and electric water heaters were the largest contributors to revenue. Domestic sales rose 30.6% from a year earlier, while export sales climbed 26.6%. The company had 69 showrooms at the end of June and plans to open more in promising cities.
Profit comparisons with last year are complicated by non-recurring items that inflated the Q2 2025 base. The prior-year period included a SAR 120 million insurance claim settlement, a SAR 3.5 million reversal of an impairment related to a fire at a sanitaryware plant, and a SAR 7.7 million adjustment for Zakat differences. Excluding those items, net profit in Q2 2026 rose by SAR 38.9 million.
Gross profit margin reached 33.2% in the quarter, up from 24.6% a year earlier. Gross profit increased by SAR 54.1 million. Al-Mudaihim attributed the improvement to initiatives launched in 2024, including better production-line efficiency, higher capacity utilization, and the opening of a new porcelain plant. The new plant improved the sales mix and helped lift average selling prices for tile products.
The company does not have precise data on its overall market share, Al-Mudaihim said. Its growth rates surpassed overall market growth in the period, indicating share gains. Sales in the tiles and sanitaryware segment rose about 17%, while electric water heater sales jumped roughly 74%.
Regional geopolitical developments had no material negative impact on demand or supply chains during Q2, the CEO said. Logistics costs remain a challenge across the sector, he added. Saudi government initiatives to improve logistics efficiency have helped mitigate the impact.
The company continues to implement its strategic initiatives, including expanding sales channels and showroom footprint and diversifying its product range. "These efforts are expected to support sustained operational performance and deliver sustainable results in line with market conditions, while enhancing shareholder value," Al-Mudaihim said.
The CEO said the company is monitoring raw material and logistics costs and will take appropriate measures to maintain its competitiveness. He added that the strategy of investing across sales channels and maintaining product quality should support further market-share gains.
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