RIYADH, Saudi Arabia,
May 12, 2024 /PRNewswire/ -- Al
Hassan Ghazi Ibrahim Shaker Co. ("Shaker", the "Group" or the
"Company"), Saudi Arabia's leading
manufacturer, importer, and distributor of Air Conditioners and
Home Appliances, has announced its financial results for the first
quarter ended 31 March 2024,
highlighting a strong start to the year as the Company continues
its growth trajectory.
Financial Highlights:
- Revenue of SAR 413.24 million, up
19.24% year-on-year (YoY), driven by higher sales in the HVAC
solutions segment and balanced growth across the company's brand
portfolio
- Gross profit of SAR 97.77
million, up 12.24% YoY, in line with higher revenues and a
favorable portfolio mix.
- Operating income of SAR 31.35
million, up 9.59% YoY, primarily driven by higher revenues,
and gross profit, offsetting the higher SG&A expenses in line
with increased strategic marketing efforts.
- Net profit1 of SAR 32.25
million, up 12.09% YoY, driven by strong revenue growth,
enhanced operational performance, and lower finance costs.
- EPS of SAR 0.67 per share,
improved by 12.09% YoY.
1: Attributable to equity owners
Shaker's strong Q1-FY24 performance reinforces the continued
strength of its strategic initiatives driven by market
differentiation and a robust growth strategy. The company's focus
on strengthening its core business segments, brand portfolio
diversification, and operational efficiency has translated into
rising demand for its high-quality products and services,
solidifying its market leadership in the HVAC and Home Appliances
segment.
Demonstrating its commitment to achieving sustainable growth
while strengthening its financial health, Shaker achieved a
significant 24.08% reduction in net debt. This strategic
deleveraging along with optimizing the usage of short-term loans
and Letter of Credits (LC) has resulted in a decrease in finance
costs, positively impacting net profit. Additionally, further
improvements in inventory management and working capital resulted
in strong cash generation from operations, reaching SAR 30.98 million.
In February 2024, Shaker signed a
landmark Memorandum of Understanding (MoU) with LG Electronics and
the Ministry of Investment of Saudi
Arabia (MISA) to explore local manufacturing of AC
compressors in the Kingdom. This marks a significant leap towards
localizing the production of the most technologically complex
component of AC units. In March 2024,
Shaker also announced the localization of manufacturing of LG
Electronics Multi V5 unit featuring the Variable Refrigerant Flow
(VRF) technology at its LG-Shaker factory in Riyadh. This cutting-edge technology is known
for its energy-saving capabilities, space-efficiency, and
reliability which will primarily target large residential projects
as well as commercial and hospitality projects. These strategic
developments mark a new era in the Saudi market, while aligning
with Saudi Arabia's Vision 2030,
and strengthening Shaker's value chain in its HVAC segment.
Shaker continued to expand its digital footprint, as its
e-commerce platform experienced strong growth driven by ongoing
efforts to improve user experience and broaden online offerings.
Additionally, the upcoming transition to SAP's S/4HANA ERP system,
on track for full roll-out by Q3-FY24, will further optimize
operational efficiency and e-commerce capabilities.
The unveiling of a new growth strategy is expected by mid-2024,
and will position Shaker for long-term growth.
Mohammed Ibrahim Abunayyan, Chief Executive Officer at
Shaker, said:
"Shaker's Q1-FY24 results are a strong start to the year,
building on the momentum we established throughout 2023. Our focus
on core business segments, brand diversification, and operational
efficiency has continued to cement our market leadership. We are
especially proud of achieving a strong balance across our brand
portfolio, demonstrating our agility and commitment to catering to
evolving customer preferences. This customer centricity is a
cornerstone of our vision, and it's reflected in our ongoing
efforts to expand our digital footprint and enhance the user
experience on our e-commerce platform. These factors, combined with
our commitment to innovation, as exemplified by the recent MoU with
LG Electronics and MISA, position Shaker for a future of industry
leadership.
Looking ahead, we are excited to share our new growth
strategy by mid-2024. This will guide our future direction while
positioning Shaker at the forefront of innovation and sustainable
growth."
About Shaker
Shaker was founded in 1950 and was amongst the first in
Saudi Arabia to introduce Air
Conditioning & Home Appliances for Saudi consumers. Shaker is
the importer and distributor of several leading international
brands including Maytag, Ariston, Indesit, Midea, Bompani, and LG
in Saudi Arabia, and the sole
distributor of LG Air Conditioners in Saudi Arabia. ESCO, as a business unit of
Shaker, provides Energy Solutions. Shaker has been a publicly
listed company on the Saudi Exchange (Saudi Exchange) since 2010.
Throughout the years, Shaker has positioned its name among the top
Saudi companies, providing a range of integrated solutions in terms
of Air Conditioners and Home Appliances in the Saudi market and the
region. For more information, visit: http://www.shaker.com.sa/
For investor and media inquiries
Sam Ryan Siahpolo, Instinctif
Partners
sam.siahpolo@instinctif.com
+971 58 831 8632
Joann Joseph, Instinctif
Partners
joann.joseph@instinctif.com
+971 58 257 5490
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