Saudi: Shaker Group's Q2 revenue soars to $174mln on HVAC growth

Announcing the results for the three-month period ended June 30, 2023, Shaker Group said its net profit registered a 69.06% growth

Saudi Arabia - Al Hassan Ghazi Ibrahim Shaker (Shaker), a leading importer, manufacturer, and distributor of air conditioners and home appliances in Saudi Arabia, has reported revenues of SR654 million ($174 million), up 10.5% year-on-year (YoY), driven by growth in the HVAC solutions and home appliances segments of 14.82% and 4.56% respectively.

Announcing the results for the three-month period ended June 30, 2023, Shaker Group said its net profit registered a 69.06% growth hitting SR44.66 million driven by 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.

Its gross profit too rose to hit SR161.34 million, up 21.76% YoY, driven by higher revenues and improved margins through an enhanced portfolio mix.

Al Shaker said the second quarter of the year began with a major development in the company’s portfolio optimization strategy.

The successful completion of the sale of the new Jordan-based entity - Vision for Electronics and Electrical Appliances (NV) - reflects Shaker’s focus on intensifying its core operations in the kingdom and enhancing its financial position.

Following the divestment, Shaker’s strategic investment in Cashew KSA made significant progress in regulatory and licensing procedures, and is on track for roll-out and operational readiness by 2024.

This marked an important step in the venture that aims to enhance its digital footprint and drive growth in the e-commerce and digital retail space, it stated.

In Q2-FY23, Shaker extended its HVAC product range with the addition of a new product within the Package Unit lineup.

This addition, targeted at enhancing the B2B portfolio, caters to the demanding requirements of HVAC systems and deepens the Company’s footprint in the segment, said the Saudi group.

Significant progress was also made in the kingdom’s megaprojects during the second quarter. The Company continued its progression and showed promising potential for securing more bids in the ambitious projects and maintains operational readiness to deliver on the large-scale initiatives that are key contributors to Saudi Arabia’s ongoing infrastructural expansion, it added.

On the Q2 performance, CEO Mohammed Ibrahim Abunayyan said: “The momentum we gained in Q1-FY23 has been sustained and accelerated in the second quarter. Our HVAC segment continued to demonstrate significant growth and we are optimizing our home appliance product and brand mix, keeping a long-term view of retaining a leading market share position."

"We are proud of our leading position with the projects sector and the role we play in the Kingdom’s economic development by manufacturing HVAC units in our LG-Shaker factory," he added.

PHOTO