Al Hassan Ghazi Ibrahim Shaker Co. (“The Company” or “Shaker”) reported a net profit of SAR 32.25 million in Q1-FY24, an increase of 12.09% year-on-year (YoY) compared to the net profit of SAR 28.77 million in Q1-FY23. Revenue: Total Revenues increased 19.24% YoY to reach SAR 413.24 million in Q1-FY23, driven by strategic efforts towards building a wider and more balanced product offering and optimizing the mix of retail, e-commerce, and B2B sales channels. The HVAC solutions segment revenue (including B2B and B2C offerings) increased by 46.98% while the Home Appliances segment decreased by 9.54%. Gross Profit: Gross profit rose by 12.24% YoY to SAR 97.77 million in Q1-FY24 compared to SAR 87.11 million in Q1-FY23. The increase in gross profit was in-line with higher revenue, and a favourable portfolio mix. Operating Profit: Income from operations in Q1-FY24 reached SAR 31.35 million, an increase of 9.59% YoY from SAR 28.60 million in Q1-FY23. The increase in operating profit was primarily driven by higher revenue and gross profit. This growth offset the higher selling, general, and administrative expenses (SG&A) in line with continued expansion initiatives and strategic marketing efforts. Net Profit: Net profit attributable to equity owners increased by 12.09% YoY, from SAR 28.77 million in Q1-FY23 to SAR 32.25 million in Q1-FY24. The strong growth in net profit resulted from higher revenues and gross profits and enhanced operational performance, which offset the marginal decline in the Company’s share of profit from the LG-Shaker HVAC factory. This growth was further supported by lower finance costs, achieved through debt reduction, and optimized capital structure allocation. Accordingly, earnings per share (EPS) improved to SAR 0.67 per share, driven by the higher net profit. |