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Al Hassan Ghazi Ibrahim Shaker Co. announces its Interim Financial Results for the Period Ending on 2021-03-31 ( Three Months )

Element ListCurrent QuarterSimilar quarter for previous year%ChangePrevious Quarter% Change
Sales/Revenue 288,301220,97530.467196,48546.729
Gross Profit (Loss) 57,63149,36216.75141,41439.158
Operational Profit (Loss) 1,622-3,894-5,776-71.918
Net Profit (Loss) after Zakat and Tax 4,538-3,305-3,93915.206
Total Comprehensive Income 5,258-3,531-3,43153.249
All figures are in (Thousands) Saudi Arabia, Riyals
Element ListCurrent PeriodSimilar period for previous year%Change
Total Share Holders Equity (after Deducting Minority Equity) 639,047622,2962.691
Profit (Loss) per Share 0.1-0.02
All figures are in (Thousands) Saudi Arabia, Riyals
Accumulated LossesCapitalPercentage %
131,890630,00020.9
All figures are in (Thousands) Saudi Arabia, Riyals
Element ListExplanation
The reason of the increase (decrease) in the net profit during the current quarter compared to the same quarter of the last year is The Company achieved profitable financial results in Q1 2021. Net profit for the quarter, compared to a net loss for the same quarter last year, was achieved for the following reasons:

1. Q1 revenue of SAR 288.3 million improved by 30.5% or SAR 67.3 million compared to the previous year’s Q1 revenue of SAR 221 million.

2. Finance costs decreased by 48.3% year-on-year

3. Share of associated profit for the current period improved by SAR 1.3 million to SAR 10.3 million, compared to SAR 9.0 million in Q1 2020

The reason of the increase (decrease) in the net profit during the current quarter compared to the previous period of the current year is Net, operating and gross profit increased compared to the previous quarter due to the following reasons:

1. Sales increased by 46.7% compared to the previous quarter

2. Expanding product portfolio and growth strategy implemented in the first quarter of the year

3. Finance costs decreased by 46.3%

4. Share of associated profit for the current period improved by SAR 4.0 million compared to SAR 6.3 million in Q4 2020

Statement of the type of external auditor's report Unmodified conclusion
Reclassification of Comparison Items The comparative figures 2020 of the Condensed Consolidated Interim Financial Statements have been reclassified to meet the current year classification according to the International Financial Reporting Standards (IFRS) that are endorsed in the Kingdom of Saudi Arabia.
Additional Information 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.

Attached Documents  

The Capital Market Authority and Saudi Exchange take no responsibility for the contents of this disclosure, make no representations as to its accuracy or completeness, and expressly disclaim any liability whatsoever for any loss arising from, or incurred in reliance upon, any part of this disclosure, and the issuer accepts full responsibility for the accuracy of the information contained in it and confirms, having made all reasonable enquiries, that to the best of their knowledge and belief, there are no other facts or information the omission of which would make the disclosure misleading, incomplete or inaccurate.

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