Al Hassan Ghazi Ibrahim Shaker Co. announces its Interim Financial Results for the Period Ending on 2022-09-30 ( Nine Months )
| Element List | Current Quarter | Similar quarter for previous year | %Change | Previous Quarter | % Change |
|---|---|---|---|---|---|
| Sales/Revenue | 257,754 | 260,117 | -0.91 | 315,567 | -18.32 |
| Gross Profit (Loss) | 57,628 | 57,151 | 0.83 | 65,555 | -12.09 |
| Operational Profit (Loss) | 10,721 | 12,304 | -12.87 | 13,976 | -23.29 |
| Net Profit (Loss) after Zakat and Tax | 8,523 | 12,032 | -29.16 | 11,651 | -26.85 |
| Total Comprehensive Income | 7,722 | 11,883 | -35.02 | 11,603 | -33.45 |
| All figures are in (Thousands) Saudi Arabia, Riyals | |||||
| Element List | Current Period | Similar period for previous year | %Change |
|---|---|---|---|
| Sales/Revenue | 893,059 | 836,983 | 6.7 |
| Gross Profit (Loss) | 201,072 | 175,997 | 14.25 |
| Operational Profit (Loss) | 43,229 | 29,847 | 44.84 |
| Net Profit (Loss) after Zakat and Tax | 34,937 | 27,106 | 28.89 |
| Total Comprehensive Income | 33,310 | 27,890 | 19.43 |
| Total Share Holders Equity (after Deducting Minority Equity) | 656,233 | 623,271 | 5.29 |
| Profit (Loss) per Share | 0.72 | 0.43 | |
| All figures are in (Thousands) Saudi Arabia, Riyals | |||
| Element List | Explanation |
|---|---|
| The reason of the increase (decrease) in the net profit during the current quarter compared to the same quarter of the last year is | Al Hassan Ghazi Ibrahim Shaker Co. (“The Company” or “Shaker”) achieved a net profit of SAR 8.5 million in Q3-2022, a 29.2% year-on-year (YoY) decrease from SAR 12.0 million in Q3-2021. |
Q3-2022 vs Q3-2021
The reasons for the decrease in net profit during the current quarter Q3-2022, compared to the same quarter of the previous year, Q3-2021, are:
• Revenues: Q3-2022 revenues were stable at SAR 257.8 million from SAR 260.1 million in Q3-2021. The marginal decrease was due to the product mix and a slowdown in consumer activity as well as inflationary pressures affecting spending across the consumer discretionary sector broadly. This was offset by the growth in the HVAC solutions segment mainly driven by mega project wins and B2B activity (Increase of 25.1% from SAR 142.5 million in Q3-2021 to SAR 178.3 million in Q3-2022)
• Gross profit: Gross profit for Q3-2022 improved marginally to SAR 57.6 million from SAR 57.2 million, driving gross profit margins higher by 1.8% year-on-year. This was a result of improved management of cost of goods sold (COGS) and effective controls on direct costs.
• Net Profit: Net profit attributable to owners decreased by 29.2% from SAR 12.0 million in Q3-2021 to SAR 8.5 million in Q3-2022 due to higher employee costs mainly related to hiring the necessary manpower to service the large B2B and mega projects, higher zakat expenses due to additional provisioning reserved for assessments for prior years (2019 – 2020), and the effect of reduced reversals in impairment loss on trade and other receivables.
• EPS: Earnings per share declined by 7.5% to SAR 0.18 in Q3-2022 compared to SAR 0.19 in Q3-2021. The share capital reduction from 630,000 in Q3-2021 to 482,334 Q3-2022 was considered as the base.
Shaker’s net profit for Q3-2022 declined as compared to Q2-2022 due to:
• Revenues were lower at SAR 257.8 million in Q3-2022 compared to SAR 315.6 million in Q2-2022. The decrease of 18.3% was due to softer market conditions, seasonality trends and slower levels of consumer activity which affected revenues from Home Appliances. The HVAC solutions segment declined at a slower rate than Home Appliances driven primarily by the continued relative strength in the B2B segment.
• Gross profit decreased by 12.1% this quarter to SAR 57.6 million from SAR 65.6 million in Q2-2022 reflecting the drop in revenues. Despite the drop in absolute values of gross profit quarter-on-quarter, gross profit margins rose from 20.8% to 22.4% as a result of sustained improvement in management of COGS and effective controls on direct costs.
• Net profit attributable to owners consequently registered a decline of 26.9% quarter-on-quarter (SAR 8.5 million in Q3-2022 vs SAR 11.7 million in Q2-2022). Selling and Distribution expenses and General and Administrative expenses were marginally lower in the current quarter vs Q2-2022, while the decrease in Other Income mainly impacted the operational cost improvement due to the impact of foreign exchange rate fluctuations.
Shaker’s net profit for 9M-2022 registered a significant increase of 28.9% to SAR 34.9 million from SAR 27.1 million in 9M-2021, due to:
• Revenues: Revenues increased by 6.7% from SAR 837.0 million in 9M-2021 to SAR 893.1 million in 9M-2022 largely driven by the improvement in the performance of the HVAC Solutions segment (increase of 17.1% year-on-year) as a result of Shaker’s strategy to capitalize on the growing B2B sector in the Kingdom and continued mega project wins.
• Gross Profit: Gross profit grew by more than double the rate of growth in revenues (14.2% vs 6.7%) for the period to reach SAR 201.1 million in 9M-2022 compared to SAR 176.0 million in 9M-2021. This demonstrated the Company’s ability to effectively control input costs and incorporate higher COGS into the sales prices of products and services to consumers and businesses.
• Other Income registered a significant increase from SAR -0.5 million to SAR 2.8 million as a result of the impact mainly from foreign exchange rate fluctuations.
Shaker has maintained its sound financial position and strong operational performance with the support of its highly experienced leadership team and board members who continue to play a key role in the ongoing and future business growth of the company.
Shaker remains at the forefront of promoting sustainability in the Kingdom in line with Saudi Green Initiative as part of Vision 2030. The company supports the Kingdom’s ongoing efforts to fulfil its national goals that empower the private sector and improve the competitiveness of the industrial sector by attracting investments that will contribute to achieving economic diversification and maximise capabilities in manufacturing.
Shaker continues to build strategic partnerships with leading international brands, supporting them to establish their presence in Saudi Arabia aligning with the National Industrial Strategy as part of Vision 2030’s National Industrial Development and Logistics Program. The company remains focused on capitalizing on the continued growth in the B2B segment and by playing a key role in being a preferred HVAC solution provider to megaprojects such as NEOM, Amaala, Red Sea Development, and Roshn.
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.