Net Profit Soars 94.91% year-on-year (YoY)
Saudi Arabia’s Al Hassan Ghazi Ibrahim Shaker Co. the Kingdom’s leading importer, manufacturer, and distributor of air conditioners and home appliances, has announced its financial results for the first quarter ended 31 March 2023, highlighting a strong start to the year as the Company expands its footprint in the market.
Shaker’s revenues of SAR 346.56mn, up 16.60% year-on-year (YoY), were driven by growth in the HVAC solutions segment and integration of LG’s full product range in the home appliance and electronics segment.
Gross profit of SAR 87.11mn, up 20.37% YoY, are in line with higher revenues and a favorable portfolio mix. Net profit of SAR 28.77mn, up 94.91% YoY, was driven by strong revenue growth, enhanced operational performance, and a more than doubled share of profit from the LG-Shaker JV HVAC factory.
Growth strategy
Shaker’s Q1-FY23 results showcase the effectiveness of its growth strategy and market differentiation, highlighting the Company’s ability to successfully navigate from a period of transformation to a new phase of expansion and partnerships with leading global brands.
The comprehensive supply agreement with LG, now encompassing the full product range of home appliances and entertainment, has expanded Shaker’s addressable market share while complementing the robust growth from core business.
In addition to strengthening the core business, Shaker has recently acquired a 10% stake in Cashew KSA, a strategic investment aimed at bolstering its e-commerce and retail platforms.
“Q1-FY23 marks an exciting new chapter in Shaker’s growth story. Our strong performance this quarter, bolstered by our expanded product offering, signals our commitment to strengthening our market position in core business segments,” noted Mohammed Ibrahim Abunayyan, Chief Executive Officer, Shaker.
