Al Hassan Ghazi Ibrahim Shaker Co. announces its Interim Financial results for the Period Ending on 2024-03-31 ( Three Months )
| Element List | Current Quarter | Similar quarter for previous year | %Change | Previous Quarter | % Change |
|---|---|---|---|---|---|
| Sales/Revenue | 413,242 | 346,563 | 19.24 | 259,561 | 59.208 |
| Gross Profit (Loss) | 97,769 | 87,106 | 12.241 | 75,063 | 30.249 |
| Operational Profit (Loss) | 31,345 | 28,603 | 9.586 | 21,632 | 44.901 |
| Net profit (Loss) | 32,249 | 28,771 | 12.088 | 3,997 | 706.83 |
| Total Comprehensive Income | 31,929 | 28,202 | 13.215 | 3,851 | 729.109 |
| All figures are in (Thousands) Saudi Arabia, Riyals | |||||
| Element List | Current Period | Similar period for previous year | %Change |
|---|---|---|---|
| Total Share Holders Equity (After Deducting the Minority Equity) | 749,658 | 682,405 | 9.855 |
| Profit (Loss) per Share | 0.67 | 0.6 | |
| All figures are in (Thousands) Saudi Arabia, Riyals | |||
| Element List | Percentage of the capital (%) | Amount | |
|---|---|---|---|
| Profit (Losses) Resulting From The Change In Investment Propertie’s Fair Value | - | - | |
| All figures are in (Thousands) Saudi Arabia, Riyals | |||
| Element List | Explanation |
|---|---|
| The reason of the increase (decrease) in the sales/ revenues 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 revenue of SAR 413.24 million in Q1-FY24, an increase of 19.24% year-on-year (YoY) from SAR 346.56 million in Q1-FY23, driven by higher sales in the HVAC solutions segment and balanced growth across its brand portfolio, combined with steady market share gains. |
The HVAC solutions segment revenue increased by a substantial 46.98%, offsetting the 9.54% decline in revenues for the Home Appliances segment, on account of normalization of sales.
Revenue:
Total Revenues increased 19.24% YoY to reach SAR 413.24 million in Q1-FY23, driven by strategic efforts towards building a wider and more balanced product offering and optimizing the mix of retail, e-commerce, and B2B sales channels.
The HVAC solutions segment revenue (including B2B and B2C offerings) increased by 46.98% while the Home Appliances segment decreased by 9.54%.
Gross Profit:
Gross profit rose by 12.24% YoY to SAR 97.77 million in Q1-FY24 compared to SAR 87.11 million in Q1-FY23.
The increase in gross profit was in-line with higher revenue, and a favourable portfolio mix.
Operating Profit:
Income from operations in Q1-FY24 reached SAR 31.35 million, an increase of 9.59% YoY from SAR 28.60 million in Q1-FY23.
The increase in operating profit was primarily driven by higher revenue and gross profit. This growth offset the higher selling, general, and administrative expenses (SG&A) in line with continued expansion initiatives and strategic marketing efforts.
Net Profit:
Net profit attributable to equity owners increased by 12.09% YoY, from SAR 28.77 million in Q1-FY23 to SAR 32.25 million in Q1-FY24.
The strong growth in net profit resulted from higher revenues and gross profits and enhanced operational performance, which offset the marginal decline in the Company’s share of profit from the LG-Shaker HVAC factory. This growth was further supported by lower finance costs, achieved through debt reduction, and optimized capital structure allocation.
Accordingly, earnings per share (EPS) improved to SAR 0.67 per share, driven by the higher net profit.
The HVAC solutions segment revenue grew by 46.60% QoQ while the Home Appliances segment witnessed an even stronger performance, with revenues soaring by an impressive 85.73% QoQ. It is important to note that sector seasonality and Ramadan were also significant driver of comparable performance QoQ.
Revenue:
Total Revenues increased 59.21% QoQ to reach SAR 413.24 million in Q1-FY24 reflecting the continued gains from the growth strategy leading to strengthening of the core business segments, further supported by increased sales during Ramadan. As a result, HVAC Solutions grew by 46.60% and Home Appliances grew by 85.73%
Gross Profit:
Shaker achieved a significant 30.25% QoQ increase in gross profit to SAR 97.77 million in Q1-FY24, compared to SAR 75.06 million in Q4-FY23.
This improvement was driven by higher revenues and portfolio mix optimization, amidst strategic efforts to capitalize on Ramadan sales and maintain competitiveness in a dynamic market which exerted downward pressure on margins.
Operating Profit:
Income from operations in rose by 44.90% QoQ to SAR 31.35 million in Q1-FY24, compared to SAR 21.63 million in Q4-FY23.
The significant growth in operating profit was primarily driven by higher revenues and increase in gross profit. This offset the increase in impairment loss on trade and other receivables and higher SG&A costs, consistent with the ongoing marketing and expansion initiatives.
Net Profit:
Net profit attributable to equity owners soared by 706.83% QoQ from SAR 4.00 million in Q4-FY23 to SAR 32.25 million in Q1-FY24, attributable to significantly higher revenue, gross profit and operating profit, lower finance costs, along with an impressive turnaround in the company's share of profit from the LG-Shaker HVAC factory.
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