What's Happening?
RAK Ceramics (Bangladesh) Ltd has reported a substantial increase in net loss for the year ending December 31, 2025. The company's net loss rose to Tk 39.59 crore, up from Tk 2.73 crore the previous year, despite a 10.56% increase in revenue. The loss per share also increased significantly. The revenue growth was driven by higher production volumes, aided by a stable supply of liquefied natural gas from mid-2025. However, the gross profit margin fell due to increased manufacturing costs and unabsorbed fixed costs from earlier gas supply disruptions. Additionally, higher finance expenses due to increased bank borrowings and provisions for aged inventory further impacted profitability. Despite these challenges, the company improved its net operating
cash flow per share and maintained a 10% cash dividend for shareholders.
Why It's Important?
The financial performance of RAK Ceramics highlights the challenges faced by manufacturing companies in managing costs and maintaining profitability amid fluctuating supply conditions. The increased reliance on bank borrowings and the impact of gas supply disruptions underscore the vulnerabilities in the supply chain and the importance of stable resource availability. The company's ability to improve cash flow and maintain dividends suggests resilience, but the significant loss indicates potential risks for investors and stakeholders. This situation reflects broader economic challenges in the manufacturing sector, particularly in regions dependent on consistent energy supplies.
