|Shaker achieved revenue of SAR 288.3 million, growing by 30.5% as compared to Q1 2020, and 46.7% compared to the previous quarter. Gross profit of SAR 57.6 million increased by 16.8% year-on-year. Shaker’s Q1 net profit reached SAR 4.5 million, a significant improvement from a net loss of SAR 3.3 million in Q1 2020. |
During the first quarter, Shaker expanded its brand portfolio with the addition of Panasonic. The Company also enhanced its operations through investment in its JV with LG, by deploying robotics and AI technology to enhance manufacturing capabilities and improve efficiency.
The accumulated losses to capital ratio improved to 20.9% from 22.05% in 2020. In this instance, the CMA’s rules and regulations for listed companies with total accumulated losses of 20% or more of capital will be applied. It should be noted that the Company’s statutory reserves are greater than the accumulated losses. Therefore, total shareholders’ equity is in excess of paid up capital by SAR 9.0 million.
Earnings / (Loss) calculation per Share:
All figures are in (Thousands) Saudi Arabia, Riyals
Profit for the Q1 2021 SAR 4,538
Less: Non-Controlling interests SAR (1,782)
Profit attributable to owners of the company (A) SAR 6,320
Number of shares (B) 63,000
Profit per share (calculated (A) divided by (B)) SAR 0.10
Loss for the Q1 2020 SAR (3,305)
Less: Non-Controlling interests SAR (1,815)
Loss attributable to owners of the company (C) SAR (1,490)
Number of shares (D) 63,000
Loss per share (calculated (C) divided by (D)) SAR (0.02)
Outlook and strategy
The Company 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. The strategy follows the success of the Breakthrough Program, which was completed in 2020 and saw Shaker achieve profitability for the first time since 2016.
The Company will build on its extensive portfolio of Home Appliances and ACs, to take advantage of emerging opportunities in the market. Management believes that growth opportunities are provided by energy efficiency programs by the government including the Saudi Energy Efficiency Center’s (“SEEC”) 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 Company also intends to tap growth in the Home Appliances market, which management believes will be 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.