Al Hassan Ghazi Ibrahim Shaker Co (Shaker), Saudi Arabia’s leading importer, manufacturer and distributor of air conditioners and home appliances, has posted nine-month (9M) net profit of SR61.43 million, up 75.83% YoY. 

 

This was driven by higher revenue and operating profit, along with an 87.28% increase in share of profit from the LG-Shaker HVAC factory, which offset the higher finance costs. 

 

Revenues in 9M-2023 of SR976.68 million, were up by 18.07% year-on-year (YoY) driven by growth in the HVAC solutions and Home Appliances segments of 20.03% and 14.77% respectively.

 

Gross profit

Gross profit of SR242.70 million, up 31.64% YoY, attributed to higher revenues and improved margins through an enhanced portfolio mix, pushing gross profit margin from 22.29% to 24.85%.

Operating income registered a significant increase of 76.64% YoY to reach SR67.52 million. This was primarily driven by higher revenue and gross profits, expanding operating margin from 4.62% to 6.91%.

 

EPS of SR1.27 per share, increased by 75.83% YoY.

 

Q3-FY23 saw Shaker's revenues rise sharply by 36.99% YoY to SR322.72 million. The Home Appliances segment led the way with a 56.33% YoY revenue increase in Q3, backed by an expanded product range, while the HVAC segment grew by 30.28% YoY. 

 

In addition, the growth in Shaker’s HVAC sales significantly improved the performance of the LG-Shaker factory. Amidst these gains, the Company strategically managed finances in response to rising SIBOR rates, by optimising the usage of short-term loans and Letter of Credits (LC). 

 

Marketing efforts

Despite the seasonal nature of the third quarter, Shaker's strategic marketing efforts boosted sales across all product categories. While the 7th Shaker store was launched in October, another store is set to open by year's end, signalling continued expansion to broaden the retail market footprint.

 

Mohammed Ibrahim Abunayyan, Chief Executive Officer at Shaker, said: “Our Q3-FY23 results mark another growth period for Shaker, highlighting our resilience and position as the kingdom's preferred destination for quality home solutions. This is a direct outcome of our strategic focus on innovation, partnership expansions and a diversified and balanced product portfolio, reinforcing our adaptability and commitment to sustained growth. The growth in our B2B portfolio is adding to the resilience of our business, enabling us to overcome the impact of seasonality. 

 

“We take pride in being integral to the kingdom’s ambitious mega-projects and our well positioned to leverage these opportunities. As we progress, we remain committed to strengthening our financial performance, expanding our market share, pursuing strategic diversification, and delivering consistent long-term value for our shareholders.”--TradeArabia News Service