Al Hassan Ghazi Ibrahim Shaker Co. announces its Interim Financial Results for the Period Ending on 2023-06-30 ( Six Months )

Element List	Current Quarter	Similar quarter for previous year	%Change	Previous Quarter	% Change
Sales/Revenue	307,394	294,395	4.42	346,563	-11.3
Gross Profit (Loss)	74,230	60,143	23.42	87,106	-14.78
Operational Profit (Loss)	19,816	11,665	69.88	28,603	-30.72
Net Profit (Loss) after Zakat and Tax	15,885	11,651	36.34	28,771	-44.79
Total Comprehensive Income	14,631	11,603	26.1	28,202	-48.12
All figures are in (Thousands) Saudi Arabia, Riyals

Element List	Current Period	Similar period for previous year	%Change
Sales/Revenue	653,957	591,627	10.54
Gross Profit (Loss)	161,336	132,508	21.75
Operational Profit (Loss)	48,419	29,017	66.86
Net Profit (Loss) after Zakat and Tax	44,656	26,414	69.06
Total Comprehensive Income	42,833	25,588	67.39
Total Share Holders Equity (after Deducting Minority Equity)	697,036	648,523	7.48
Profit (Loss) per Share	0.93	0.55
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”) reported a net profit of SAR 15.89 million in Q2-FY23, an increase of 36.34% compared to the net profit of SAR 11.65 million in Q2-FY22.

Revenue:

Shaker achieved revenue of SAR 307.39 million in Q2-FY23, an increase of 4.42% YoY from SAR 294.40 million in Q2-FY22, driven by higher sales in the HVAC solutions segment (including B2B and B2C offerings) and a diversified and expanded product portfolio.

The HVAC solutions segment revenue (including B2B and B2C offerings) increased by 9.60% while the Home Appliances segment decreased by 6.62%.

Gross Profit:

Gross profit increased by 23.42% YoY to SAR 74.23 million in Q2-FY23 compared to SAR 60.14 million in Q2-FY22.

The increase in gross profit was in-line with higher revenue, and a favourable portfolio mix.

Operating Profit:

Income from operations in Q2-FY23 reached SAR 19.82 million, an increase of 69.88% YoY from SAR 11.67 million in Q2-FY22.

The significant growth in operating profit was primarily driven by higher revenue and gross margin accompanied with lower impairment loss on trade and other receivables. This growth offsets the higher selling, general, and administrative expenses (SG&A) in line with the continued expansion initiatives.

Net Profit:

Net profit attributable to equity owners increased significantly by 36.34% from SAR 11.65 million in Q2-FY22 to SAR 15.89 million in Q2-FY23.

The strong growth in net profit resulted from higher revenues, enhanced operational performance, and increase in the Company’s share of profit from the LG-Shaker HVAC factory, which offset the higher finance costs due to increased SIBOR.

Accordingly, earnings per share (EPS) increased to SAR 0.33 in Q2-FY23 compared to SAR 0.24 in Q2-FY22.The reason of the increase (decrease) in the net profit during the current quarter compared to the previous quarter of the current year is Shaker’s net profit was lower by 44.79% in Q2-FY23 at SAR 15.89 million compared to Q1-FY23 mainly driven by a decrease in total revenue of 11.30% as a result of lower sales in the Home Appliances segment due to sales and operational seasonality, which offset the increase in HVAC Solutions segment sales of 24.81% quarter on quarter (QoQ).The reason of the increase (decrease) in the net profit during the current period compared to the same period of the last year is Shaker’s net profit for H1-FY23 soared by 69. 06% to SAR 44.66 million compared to SAR 26.41 million in H1-FY22 mainly driven by:

Revenues: Total revenue increased by 10.54% year on year (YoY) as the growth strategy was realized with a more diversified and expanded product portfolio along with an expanded market share. HVAC Solutions and Home Appliances revenue grew by 14.82% and 4.56% respectively YoY.

Gross Profit: Improved management of cost of goods sold (COGS) through a favourable portfolio mix led to an increase in gross profit of 21.76% from SAR 132.51 million to SAR 161.34 million YoY.

Operating profit: Income from operations rose by 66.86% YoY driven by higher total revenue and gross profit accompanied with lower impairment loss on trade and other receivables. This offset the higher selling, general, and administrative expenses (SG&A) in line with the continued expansion initiatives.

Net profit: Net profit attributable to equity owners increased significantly by 69.06% YoY to reach SAR 44.66 million in H1-FY23, as a result of higher revenue and operating profit, along with a 91.05% increase in share of profit from the LG-Shaker HVAC factory, which offset the higher finance costs due to increased SIBOR.Statement of the type of external auditor's report Unmodified conclusionReclassification of Comparison Items Corresponding figures for the comparative periods have been reclassified to comply with IFRS requirements for disclosure of discontinued operations.Attached Documents

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