Riyadh – Al Hassan Ghazi Ibrahim Shaker Co recorded a net profit of SAR 1.79 million in the first half (H1) of 2020, against a net loss of SAR 38.68 million in H1-19.
The Saudi importer, manufacturer, and distributor of air conditioners and home appliances gained SAR 488.75 million in revenue during the six-month period ended 30 June 2020, posting annual growth of 8.4%, according to a press release on Tuesday.
Operating profit for the six-month period came in at SAR 3.36 million, compared to an operating loss of SAR 25.43 million, while gross profit was SAR 101.48 million, improving by 24.8% year-on-year (YoY).
The company saw profitable results for the first time since Q3 of 2016, driven by the success of its Breakthrough Program turnaround strategy and an agile response to the COVID-19 pandemic.
Operational efficiencies and structural changes were introduced across the business, and the company’s portfolio of brands has continued to grow, with Bompani added to the Home Appliances segment in H1-20.
“We are very pleased to be reporting a return to profitability, on the back of strong performance during the first half, and in spite of challenging market conditions. Healthy bottom-line results were driven by strong growth in revenues, coupled with reduction and control of expenses, along with our agility in responding to the headwinds created by the COVID-19 pandemic,” Shaker Group’s CEO, Azzam Saud Almudaiheem, remarked.
Explaining how the group mitigated the pandemic impact on sales at traditional retail outlets, Almudaiheem said, “We have utilised the Saudi government’s private sector support package and were agile in pivoting the sales and distribution model to recover quickly. The strengthening of our relationships with dealers, as part of the Breakthrough Program, has been vital. Their e-commerce platforms were essential for maintaining and growing sales volumes. Going forward, the growth of our own e-commerce platform will be important for diversifying sales channels.”