Improved economic activity and agile response to Covid-19 drive top-line growth
Shaker Group (Al Hassan Ghazi Ibrahim Shaker Co) Saudi Arabia’s leading importer, manufacturer and distributor of Air Conditioners and Home Appliances, has announced its financial results for the period ended 30 September 2020.
Third quarter revenue of SAR 247.5mn decreased by 0.15% from Q3-2019, and at SAR 736.2mn for the nine-month period, improved by 5.4% from 2019. Gross profit of SAR 52.7mn in Q3-2020 improved by 7.4% over Q3 2019, and at SAR 154.1mn for the nine-month period, improved by 18.3% compared to 2019, the company announced in a press release.
The Group’s Q3 net profit reached SAR 4.4mn, a significant improvement from a net loss of SAR 6.7mn in Q3 2019. Net profit for the nine-month period stood at SAR 6.2mn, compared to a loss of SAR 45.3mn in 2019.
Management attributes stable revenues, the success of its Breakthrough Programme turnaround strategy, and ongoing initiatives in response to the Covid-19 pandemic for its profitability during both the third quarter and the nine-month period, the press note continued.
“While the most recent period has not been without its challenges, promising bottom-line performance was driven by stable sales revenue, continued cost reduction initiatives and strict compliance with the operational pillars of our Breakthrough Programme,” noted Eng. Azzam Saud Almudaiheem, CEO, Shaker Group.
“The latest results continue to demonstrate the impact of the Breakthrough Programme and the efficiencies we have built into our operating model on a year-on-year basis for both top- and bottom-line results have improved considerably. We have achieved this by an unwavering focus on boosting sales performance at both structural and strategic levels, while keeping close control of costs,” affirmed Mohammed Ibrahim Abunayyan, Chief Strategy & Transformation Officer, Shaker Group.
Q1-Q3 2020 financial performance highlights:
- Total revenue of SAR 736.2mn improved by 5.4% from 2019
- Gross profit of SAR 154.1mn improved by 18.3% year-on-year (YoY)
- Operating profit of SAR 6.3mn improved from a loss of SAR 31.6mn
- Net profit of SAR 6.2mn improved from a loss of SAR 45.3mn in 9M-2019 (9 months 2020)
