Al Hassan Ghazi Ibrahim Shaker Co. announces its Interim Financial Results for the Period Ending on 2023-09-30 ( Nine Months )

Element List	Current Quarter	Similar quarter for previous year	%Change	Previous Quarter	% Change
Sales/Revenue	322,719	235,570	36.99	307,394	4.99
Gross Profit (Loss)	81,364	51,863	56.88	74,230	9.61
Operational Profit (Loss)	19,100	9,208	107.43	19,816	-3.61
Net Profit (Loss) after Zakat and Tax	16,774	8,523	96.81	15,885	5.6
Total Comprehensive Income	16,842	7,722	118.1	14,631	15.11
All figures are in (Thousands) Saudi Arabia, Riyals

Element List	Current Period	Similar period for previous year	%Change
Sales/Revenue	976,676	827,197	18.07
Gross Profit (Loss)	242,700	184,371	31.64
Operational Profit (Loss)	67,519	38,225	76.64
Net Profit (Loss) after Zakat and Tax	61,430	34,937	75.83
Total Comprehensive Income	59,675	33,310	79.15
Total Share Holders Equity (after Deducting Minority Equity)	713,878	656,233	8.78
Profit (Loss) per Share	1.27	0.72
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 16.77 million in Q3-FY23, an increase of 96.81% compared to the net profit of SAR 8.52 million in Q3-FY22.

Revenue:

Shaker achieved revenue of SAR 322.72 million in Q3-FY23, an increase of 36.99% YoY from SAR 235.57 million in Q3-FY22, driven by higher sales in the HVAC solutions and Home Appliances segment.

The HVAC solutions segment revenue (including B2B and B2C offerings) grew by 30.28% while the Home Appliances segment increased by 56.33%.

Gross Profit:

Gross profit increased by 56.88% YoY to SAR 81.36 million in Q3-FY23 compared to SAR 51.86 million in Q3-FY22.

The increase in gross profit was in-line with higher revenue, improved management of cost of goods sold (COGS) and a favourable product portfolio mix.

Operating Profit:

Income from operations in Q3-FY23 reached SAR 19.10 million, an increase of 107.43% YoY from SAR 9.21 million in Q3-FY22.

The strong growth in operating profit was primarily driven by higher revenue and gross margin. This growth offsets the higher selling, general, and administrative expenses (SG&A) in line with higher personnel costs and expansion in sales, marketing, and promotions related initiatives.

Net Profit:

Net profit attributable to equity owners increased significantly by 96.81% from SAR 8.52 million in Q3-FY22 to SAR 16.77 million in Q3-FY23.

The significant growth in net profit resulted from higher revenues, improved operational efficiency, and increase in the Company’s share of profit from the LG-Shaker HVAC factory by 80.39%, which offset the higher finance costs due to increased SIBOR.

Accordingly, earnings per share (EPS) increased by 96.81% to SAR 0.35 in Q3-FY23 compared to SAR 0.18 in Q3-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 higher by 5.60% in Q3-FY23 at SAR 16.77 million compared to SAR 15.89 million in Q2-FY23. This increase was driven by a steady growth of 3.76% in HVAC solutions segment and 8.05% in Home Appliances segment, leading to a 4.99% increase in total revenues. The success of expansion initiatives along with a strong and diversified portfolio and higher share of profits from the LG-Shaker HVAC factory helped offset the higher SG&A costs, and finance costs.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 9M-FY23 increased by 75.82% to SAR 61.43 million compared to SAR 34.94 million in 9M-FY22 mainly driven by:

Revenue:

Total revenue increased by 18.07% year on year (YoY) as the gains from the growth strategy were realized leading to an enhanced product portfolio across the core business segments, along with a steady growth in market share. As a result, HVAC Solutions grew by 20.03% and Home Appliances grew by 14.77% YoY.

Gross Profit:

Efficient cost of goods sold (COGS) management achieved through an optimized portfolio mix led to a 31.64% increase in gross profit from SAR 184.37 million to SAR 242.70 million YoY.

Operating profit:

Income from operations registered an increase of 76.64% YoY driven by higher total revenue and improved gross margins accompanied with reduction of impairment loss on trade and other receivables. This offset the higher SG&A costs, consistent with the ongoing expansion initiatives.

Net profit:

Net profit attributable to equity owners increased sharply by 75.83% YoY to reach SAR 61.43 million in 9M-FY23, attributable to significantly higher revenue and operating profit, along with an 87.28% 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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