Saudi Ceramic Co. announces its Interim Financial results for the Period Ending on 2026-06-30 ( Six Months )

Element List	Current Quarter	Similar quarter for previous year	%Change	Previous Quarter	% Change
Sales/Revenue	377,851	290,126	30.236	383,015	-1.348
Gross Profit (Loss)	125,374	71,263	75.931	119,480	4.933
Operational Profit (Loss)	35,674	125,975	-71.681	37,210	-4.127
Net Profit (Loss) Attributable to Shareholders of the Issuer	20,240	112,796	-82.056	22,419	-9.719
Total Comprehensive Income Attributable to Shareholders of the Issuer	20,240	113,461	-82.161	22,419	-9.719
All figures are in (Thousands) Saudi Arabia, Riyals

Element List	Current Period	Similar period for previous year	%Change
Sales/Revenue	760,866	674,729	12.766
Gross Profit (Loss)	244,854	172,884	41.629
Operational Profit (Loss)	72,884	160,204	-54.505
Net Profit (Loss) Attributable to Shareholders of the Issuer	42,659	133,917	-68.145
Total Comprehensive Income Attributable to Shareholders of the Issuer	42,659	134,582	-68.302
Total Shareholders Equity (after Deducting Minority Equity)	1,545,775	1,558,012	-0.785
Profit (Loss) per Share	0.43	1.34
All figures are in (Thousands) Saudi Arabia, Riyals

Element List	Amount	Percentage of the capital (%)
Profit (Losses) Resulting From The Change In Investment Propertie’s Fair Value	-	-
All figures are in (Thousands) Saudi Arabia, Riyals

Element List	Explanation
The reason of the increase (decrease) in the sales/ revenues during the current quarter compared to the same quarter of the last year is	Sales during the current quarter increased by SAR 87.7 million, representing a 30.2% growth compared to the same quarter of the last year. This increase was primarily driven by higher sales volumes of water heaters and tiles, in addition to an increase in the average selling prices of tile products, mainly attributable to the higher sales volume of porcelain tiles.

It is worth noting that domestic sales increased by SAR 81.4 million, representing a 30.6% growth, while export sales increased by SAR 6.3 million, representing a 26.6% growth, compared to the same quarter of the last year.The reason of the increase (decrease) in the net profit during the current quarter compared to the same quarter of the last year is Net profit for the current quarter decreased by SAR 92.3 million compared to the same quarter of the last year. This was primarily due to the inclusion of non-recurring items in the same quarter of the last year, including an insurance claim settlement of SAR 120 million, the reversal of an impairment on an item of property, plant, and equipment related to the fire at the second sanitaryware factory amounting to SAR 3.5 million, and the recognition of Zakat differences totaling SAR 7.7 million.

Excluding the impact of these non-recurring items, net profit for the current quarter increased by SAR 38.9 million compared to the same quarter of the last year. This improvement was primarily driven by an increase in the gross profit margin to 33.2% during the current quarter, compared to 24.6% in the same quarter of the last year. The improvement was mainly attributable to enhanced production line efficiency, better utilization of production capacity, the implementation of production cost optimization initiatives, and a 30.2% increase in sales compared to the same quarter of the last year.The reason of the increase (decrease) in the sales/ revenues during the current quarter compared to the previous one is Sales declined marginally during the current quarter by SAR 5.2 million, representing a 1.3% decrease compared to the previous quarter. This slight decline was primarily attributable to a SAR 7.0 million 5.5% decrease in electric water heater sales, mainly due to the seasonal factors affecting demand during this period.The reason of the increase (decrease) in the net profit (loss) during the current quarter compared to the previous one is Net profit for the current quarter decreased by SAR 2.1 million compared to the previous quarter. This was primarily due to the inclusion of a non-recurring item in the previous quarter, representing the reversal of an impairment on an item of property, plant, and equipment related to the fire at the second sanitaryware factory, amounting to SAR 4.4 million.

Excluding the impact of this non-recurring item, net profit for the current quarter increased by SAR 2.3 million compared to the previous quarter. This improvement was mainly driven by an increase in the gross profit margin to 33.2% during the current quarter, compared to 31.2% in the previous quarter, reflecting the continued improvement in operational efficiency and enhanced production cost management.The reason of the increase (decrease) in the sales/ revenues during the current period compared to the same period of the last year is Sales during the current period increased by SAR 86.1 million, representing a 12.8% growth compared to the same period of the last year. This increase was primarily driven by higher sales volumes of water heaters and ceramic tiles, in addition to an increase in the average selling prices of tile products, mainly attributable to higher sales of porcelain tiles.

It is worth noting that domestic sales increased by SAR 77.6 million, representing a 12.4% growth, while export sales increased by SAR 8.6 million, representing a 16.8% growth, compared to the same period of the last year.The reason of the increase (decrease) in the net profit during the current period compared to the same period of the last year is Net profit for the current period decreased by SAR 90.9 million compared to the same period of the last year. This was primarily due to the inclusion of non-recurring items in the same period of the last year, including an insurance claim settlement of SAR 120 million and the recognition of Zakat differences amounting to SAR 7.7 million. In addition, the results of both the current period and the same period of the last year included the reversal of an impairment on an item of property, plant, and equipment related to the fire at the second sanitaryware factory, amounting to SAR 4.4 million and SAR 3.5 million, respectively.

Excluding the impact of these non-recurring items, net profit for the current period increased by SAR 35.8 million compared to the same period of the last year. This improvement was primarily driven by an increase in the gross profit margin to 32.2% during the current period, compared to 25.6% in the same period of the last year. The improvement was mainly attributable to enhanced production line efficiency, better utilization of production capacity, the implementation of production cost optimization initiatives, and 12.8% growth in sales compared to the same period of the last year.

On the other hand, selling and marketing expenses increased by SAR 26.9 million compared to the same period of the last year. This increase was primarily attributable to the operating costs of the Company's newly opened retail showrooms, in addition to increased transportation expenses resulting from higher sales volumes and higher logistics charges during the current period compared to the same period of the last year.Statement of the type of external auditor's report Unmodified conclusionComment mentioned in the external auditor’s report, mentioned in any of the following paragraphs (other matter, conservation, notice, disclaimer of opinion, or adverse opinion) N/AReclassification of Comparison Items N/AAdditional Information The Company continues to implement its initiatives aimed at optimizing production costs, improving production and sales planning, enhancing production capacity utilization, and strengthening working capital management, all of which contribute to improving the gross profit margin and enhancing the Company's overall profitability.

At the same time, the Company continues to execute its growth strategy by expanding its showroom network across various regions of the Kingdom, broadening its presence in both domestic and international markets, increasing its market share, and exploring new growth opportunities, thereby supporting sustainable growth and maximizing long-term value for shareholders.

The Capital Market Authority and Saudi Exchange take no responsibility for the contents of this disclosure, make no representations as to its accuracy or completeness, and expressly disclaim any liability whatsoever for any loss arising from, or incurred in reliance upon, any part of this disclosure, and the issuer accepts full responsibility for the accuracy of the information contained in it and confirms, having made all reasonable enquiries, that to the best of their knowledge and belief, there are no other facts or information the omission of which would make the disclosure misleading, incomplete or inaccurate.