| Element List | Current Quarter | Similar quarter for previous year | %Change | Previous Quarter | % Change |
|---|---|---|---|---|---|
| Sales/Revenue | 525.6 | 477.8 | 10.004 | 545.5 | -3.648 |
| Gross Profit (Loss) | 67.5 | 70.8 | -4.661 | 93.7 | -27.961 |
| Operational Profit (Loss) | 14.5 | 18.7 | -22.459 | 32.1 | -54.828 |
| Net profit (Loss) | 4 | 7.2 | -44.444 | 28 | -85.714 |
| Total Comprehensive Income | 7 | 7.1 | -1.408 | -39.8 | - |
| All figures are in (Millions) Saudi Arabia, Riyals | |||||
| Element List | Current Period | Similar period for previous year | %Change |
|---|---|---|---|
| Sales/Revenue | 1,071.1 | 974.2 | 9.946 |
| Gross Profit (Loss) | 161.2 | 149.9 | 7.538 |
| Operational Profit (Loss) | 46.6 | 43.8 | 6.392 |
| Net profit (Loss) | 32 | 18.9 | 69.312 |
| Total Comprehensive Income | -32.8 | -3.7 | 786.486 |
| Total Shareholders Equity (after Deducting Minority Equity) | 310.4 | 368.5 | -15.766 |
| Profit (Loss) per Share | 0.56 | 0.33 | |
| All figures are in (Millions) Saudi Arabia, Riyals | |||
| Element List | Amount | Percentage of the capital (%) | |
|---|---|---|---|
| Profit (Losses) Resulting From The Change In Investment Propertie’s Fair Value | - | - | |
| Accumulated Losses | - | - | |
| All figures are in (Millions) 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 | In 2024, L’azurde has continued to deliver solid and steady performance, pursuing a top implementation of its transformation initiatives launched the last 2 years. |
The following factors mainly explain the changes in group revenues in the second quarter of 2024:
1. Group total revenues, including gold metal value, were SAR 525.6 million in the second quarter of 2024, an increase of 10% compared to SAR 477.8 million in the in the same quarter of last year. It is worth noting that the Group does not make profits or losses from the value of the sold gold as a metal.
2. Group operating revenues, which better represent revenues of the Group after excluding gold metal value, amounted to SAR 108.5 million in the second quarter of 2024, a decrease of 5.9% compared to SAR 115.3 million in the same quarter of last year.
In KSA, retail operating revenues were 12.9% higher than last year due to growth in like-for-like sales of the existing stores and extension of the stores network by opening new stores in top locations.
In Egypt, wholesale operating revenues increased by 59.3% in EGP terms when compared to the same period of last year due to strong sales of L’azurde gold in traditional gold souks, however, after translation to SAR due to the devaluation of EGP, it increased by 3.0% compared to same quarter of last year. Retail operating revenues in Egypt grew by 30.8% in EGP terms, supported by growth in like-for-like sales of the existing stores and extension of the stores network by opening new stores in top locations however, decreased by 15.4% compared to same quarter of last year after translation to SAR due to the devaluation of EGP. The Group continues to raise prices in EGP in Egypt successfully in order to offset the devaluation of EGP.
1. Group gross profit of SAR 67.5 million in the second quarter of 2024 was 4.7% lower than same quarter last year of SAR 70.8 million due to lower operating revenues.
2. Group operating profit of SAR 14.5 million for the second quarter of 2024 was lower by 22.5%, when compared to SAR 18.7 million in same quarter last year due to the reasons mentioned above.
3. Net profit in the second quarter of 2024 amounted to SAR 4.0 million compared to SAR 7.2 million in the same quarter last year, a decrease of 44% for the reasons mentioned above.
2. Operating revenues of SAR 108.5 million for the second quarter of 2024 were lower than first quarter of 2024 by 25.4% of SAR 145.5 million due to seasonality.
The following factors mainly explain the changes in group revenues in the first six months of 2024:
1. Group total revenues, including gold metal value, were SAR 1,071.1 million in the first six months of 2024, an increase of 9.9% compared to SAR 974.2 million in the in the period of last year. It is worth noting that the Group does not make profits or losses from the value of the sold gold as a metal.
2. Group operating revenues, which better represent revenues of the Group after excluding gold metal value, amounted to SAR 254.0 million in the first six months of 2024, an increase of 5.2% compared to SAR 241.4 million in the same period of last year.
In KSA, retail operating revenues were 20.8% higher than last year due to growth in like-for-like sales of the existing stores and extension of the stores network by opening seven new stores in top locations.
In Egypt, wholesale operating revenues increased by 45.5% in EGP terms when compared to the same period of last year due to strong sales of L’azurde gold in traditional gold souks and increased by 8.6% compared to same quarter of last year after translation to SAR due to the devaluation of EGP. Retail operating revenues grew by 40.2% in EGP terms, supported by growth in like-for-like sales of the existing stores and extension of the stores network by opening new stores in top locations however, increased by 6.9% compared to same quarter of last year after translation to SAR due to the devaluation of EGP.
1. Group gross profit of SAR 161.2 million in the second quarter of 2024 was 7.5% higher than same period of last year of SAR 149.9 million due to higher operating revenues.
2. Group operating profit of SAR 46.6 million for in the first six months of 2024 was higher by 6.4%, when compared to SAR 43.8 million in same period last year due to the reasons mentioned above.
3. Net profit in the first six months quarter of 2024 amounted to SAR 32.0 million compared to SAR 18.9 million in the same period last year, an increase of 69% for the reasons mentioned above.
4. Basic Earnings per Share (“EPS”) improved to SAR 0.56 in the second quarter of 2024 compared to SAR 0.33 in the same period of last year.
5. Total Shareholders’ Equity on 30 June 2024 was SAR 310.4 million compared to SAR 368.5 million on 30 June 2023, a decrease of 15.8%, due to payment of dividends, and a negative movement in the Currency Translation Reserve due to unrealized foreign exchange differences on investment in Egypt. It is worth mentioning that the Currency Translation Reserve is a non-cash item that arises on consolidation only and fluctuates with the fluctuation of the foreign exchange rates. Total Shareholders’ Equity excluding the Currency Translation Reserve amounted to SAR 668.5 million compared to SAR 639.3 million in 30 June 2023 and increased by SAR 29.3 million.
Despite lower net profit in Q2 2024 compared to Q1 2024 and Q2 2023 due to seasonality and some favorable factors in the comparative periods, the company managed to achieve a decent profit supported by strong retail performance in KSA and Egypt. The impact of the EGP devaluation in Q2 2024 will be gradually offset in the future by raising prices in EGP to achieve higher or same profitability.
The Company continues to successfully pursue its turnaround plan introduced in 2021-2024 and delivered robust results consistently quarter after quarter. Looking ahead, we will continue implementing innovations and new initiatives to grow our topline, improve our gross margin and operate with lower working capital. We offer a diversified portfolio of brands including L’azurde, TOUS and Miss L’. We keep revitalizing our offering to adapt and win in times of changing consumers’ shopping behaviors by launching new products offering great value to consumers and providing us strong margins.
The strategic drivers for the future success of the Company consist of:
1. Growing our successful L’azurde retail business through new points of sales and a stronger assortment across GCC. We have a great opportunity to increase the current network of L’azurde retail to a much larger network, leveraging the strong performance of the stores. The Company has been successful in finding several promising new retail locations where stores will be opened soon, and the Company pursues the search of new locations.
2. Expanding the fast-growing Miss L’ fashion jewelry line to its full potential through our Mono-Brand retail points of sales, e-commerce, and 3rd party retailers.
3. Enhancing the profitability of the wholesale business selling jewelry by weight, through more profitable products mix and lower working capital.
4. Driving the profitability of our fast growing e-commerce business through more efficient technology infrastructure and a more effective CRM program.
5. Expanding the TOUS global franchise business in KSA through stronger assortment, new stores, and more investments in marketing.
6. Developing new material growth initiatives such as M&A across the GCC to leverage the Company’s capabilities and diversify the revenues and profits outside Egypt.
7. Growing our cash position and reinforcing our solid banking relationships to support the Company’s transformation initiatives.
For more information, we would like to draw the attention of the shareholders that the Consolidated Financial Statements for the year ended 30 June 2024 will be available on Company’s website (http://www.lazurde.com) under investors’ relations section.
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.