RAK Ceramics (Bangladesh) Ltd, one of the leading ceramics manufacturers in the country, fell into losses in the first quarter of the financial year 2025 due to higher raw material and manufacturing costs.

The ceramics maker posted a loss of Tk 2.53 crore in the January–March quarter, a sharp reversal from a profit of Tk 4.62 crore in the same period of 2024, according to its financial statement. The first-quarter loss of 2025 follows RAK Ceramics' loss of Tk 2.73 crore in the financial year 2024.

The company's revenue dropped 17 percent year-on-year to Tk 146.89 crore in Q1.

RAK attributed the decline in sales to reduced demand for ceramic products during the month of Ramadan.

The company's gross profit margin slightly fell to 20.48 percent from 21.47 percent due to rising raw material and manufacturing costs.

Finance expenses also increased as RAK borrowed from banks to meet additional working capital requirements, it said.

Its consolidated loss per share stood at Tk 0.06 for January–March 2025, compared to earnings per share of Tk 0.11 a year earlier.

The company's consolidated net operating cash flow per share turned negative at Tk 0.15 during the period, down from a positive Tk 0.83 in the same quarter last year.

RAK said higher purchases of raw materials for additional production led to greater cash outflows than collections from receivables, adversely affecting cash flow.

According to Dhaka Stock Exchange data as of March 31, 2025, sponsors and directors held 72.08 percent of the company's shares, institutional investors held 16.99 percent, foreign investors 0.16 percent, and the general public 10.77 percent.