Saudi Arabia’s Shaker Group’s revenues up 42% in Q3

Gross profit of $13.09mln in Q3 improved by 79.7% year-on-year


Al Hassan Ghazi Ibrahim Shaker Co (Shaker Group), Saudi Arabia’s leading importer, manufacturer and distributor of air conditioners and home appliances, has reported third-quarter revenue of SR247.8 million ($66.08 million), a growth of 42.5 per cent year-on-year.

Shaker Group also revealed a revenue of SR698.7 million ($186.32 million) for the nine-month period, which improved by 16.2 per cent from 2018.

Gross profit of SR49.1 million ($13.09 million) in Q3 improved by 79.7 per cent year-on-year.

The group’s Q3 net loss of SR6.7 million ($1.78 million) narrowed by 85.7 per cent year-on-year, with an operating loss of SR6.2 million ($1.65 million) decreasing by 80.3 per cent.

The nine-month net loss for 2019 was SR46.3 million ($12.35 million), narrowing by 55.1 per cent year-on-year.

Management accredits the robust increase in revenues, and a significant reduction in net and operating losses, to the success of its Breakthrough Program, which focuses on strengthening and broadening revenue streams while rationalizing costs and improving operating efficiencies.

Engineer Azzam Saud Almudaiheem, chief executive officer at Shaker Group, said: “These results are very pleasing and are a testament to the material impact that our Breakthrough Transformation Program has had in the last nine months.”

“Now, we are focusing our efforts on seeking to achieve more competitive gross margins. In recent months, we have carved out a dominant share of AC sales related to the SEEC programme, and this will remain another important growth avenue for our Saudi operations in the near- and medium-term,” Almudaiheem added.

The Q3 2019 financial performance highlights include:

• Total revenue of SR247.8 million improved by 42.5 per cent year-on-year and decreased by 2.2 per cent on the previous quarter;

• Gross profit of SR49.1 million improved by 79.7 per cent year-on-year and by 1.6 per cent on the previous quarter;

• Operating loss of SR6.2 million decreased by 80.3 per cent year-on-year and increased by 5.6 per cent on the previous quarter;

• Net loss of SR 6.7 million decreased by 85.7 per cent year-on-year and by 38.1 per cent on the previous quarter.

Almudaiheem continued: “We have established a theme of continuous improvement, which has provided us with a healthy pipeline of major project opportunities, as well as energy audit and retrofitting mandates for our Esco business unit.”

“Meanwhile, we have boosted the strength of our B2B salesforce with senior appointments that will drive revenue growth and bring broader and deeper experience to our team. We are looking forward to completing the year and continuing our transformation, entering an exciting new chapter for the Group in 2020,” he added. – TradeArabia News Service

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