Al Hassan Ghazi Ibrahim Shaker Company (Shaker), a leading Saudi-based manufacturer and distributor of air-conditioners and home appliances, has registered a net profit of SR4.5 million ($1.2 million) for the first three months, compared to a net loss of SR3.3 million ($879,522) last year. 

 

Announcing its financial results for the three-month period ended March 31, Shaker said it has achieved revenue of SR288.3 million, growing by 30.5% compared to Q1 last year and by 46.7% compared to the previous quarter. Also its gross profit of SR57.6 million increased by 16.8% year-on-year. 

 

The third consecutive profitable quarter was mainly due to Shaker's strong and sustained growth in revenues in addition to the management's ongoing optimization and cost saving measures, a focus on innovation, and the success of the company’s product portfolio strategy. 

 

The Saudi group said the gross profit improved by 16.8% year-on-year to hit SR57.6 million, while its operating profit surged to hit SR1.6 million in Q1 improved from a loss of SR3.9 million last year.

 

CEO Mohammed Ibrahim Abunayyan said: "During the first quarter our team continued to demonstrate flexibility to operate in a challenging environment and deliver strong sales and earnings. At the beginning of the year, we rolled out our 2021-2023 strategy and we are pleased to already see the results of our growth plan."

 

"We continue to expand our footprint in our core segments – AC and Home Appliances – by growing our portfolio and seeking new opportunities in the market. In the first quarter we welcomed Panasonic, a brand with which we have now entered the TV category," he noted. 

 

"Meanwhile, we have pursued opportunities emerging from the government’s commitment to mega projects across the Kingdom, and this is an area we will continue to place significant emphasis on," he added. 

 

Abunayyan pointed out that in support of its strategy, Shaker is looking to innovate across the supply chain and invest in technology to further optimize its operating model. 

 

"Most recently, we have rolled out robotics and Artificial Intelligence in our LG-Shaker manufacturing facility in Riyadh. The new technology increases production speed and accuracy, and allows us to bring the manufacture of several component parts in-house. By deploying such technology, we strengthen our capabilities and reduce costs," he added.

 

On its future outlook, Abunayyan said: "Shaker is now implementing its new strategy until 2023, which aims to grow the business by becoming the preferred choice for customers and the ideal partner for brands in the Saudi consumer electronics and appliances sector."

 

"We will build on our extensive portfolio of home appliances and ACs to take advantage of emerging opportunities in the market. Saudi Arabia’s AC market is expected to grow by 2% in the next two years, with growth supported by energy efficiency programmes by the government including the Saudi Energy Efficiency Center’s high-efficiency AC initiative, and Tarsheed, the Saudi government’s National Energy Services Company."

 

"Mega projects such as Neom and Red Sea also present compelling opportunities. The home appliances market is expected to grow by 3% in the next three years driven by consumer demand for energy efficient products, increasing disposable income as more women enter the workforce, and a strong pipeline of housing projects supported by the Saudi government," he added.-TradeArabia News Service