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Shaker Group's revenue for 2019 surges 14pc to $234m

RIYADH, March 29, 2020

Al Hassan Ghazi Ibrahim Shaker Company, a leading Saudi manufacturer and distributor of air-conditioners and home appliances, has registered a full-year revenue of SR882.8 million ($234.2 million) for 2019, up 14.1 per cent over the previous year.

Announcing its financial results for the year ended December 31, 2019, Shaker Group said the gross profit of SR165.6 million increased by 65.8% year-on-year, while the group’s 12-month net loss of SR49.8 million narrowed by 74.8%, with an operating loss of SR38.4 million decreasing by 75.2%.

The Saudi group said the healthy increase in revenues was mainly because of significant reduction in net and operating losses, to the success of its Breakthrough Program, which has focused on strengthening and broadening revenue streams while rationalizing costs and improving operating efficiencies.

The Breakthrough Program was introduced and piloted for the first time at the end of 2018, and was officially launched at the beginning of 2019, it added.
 
CEO Engineer Azzam Saud Almudaiheem said: "As with recent periods, these financial results are a clear indication of the impact that the Breakthrough Program turnaround strategy has had on our business. Having completed an aggressive liquidation process in 2019, and having fully restructured our sales organisation, we are now focused on driving improved sales while targeting competitive gross margins."

"We have captured a healthy share of air-conditioning sales related to the Saudi Energy Efficiency Center (SEEC) programme, and this remains an important growth avenue in the medium-term. In addition, developments in 2019 included the launch of our e-commerce platform, which we intend to build on in 2020, along with a strong uptick in sales across our Home Appliances portfolio," noted Almudaiheem.
 
The top official both the board and management were working hard to mitigate any adverse effect of the Covid-19 pandemic.

"We are monitoring the situation daily, and will introduce contingency measures for our supply chain and distribution network, should it become necessary. Our business continuity protocols remain in place and effective at the present time," he noted.
 
Mohammed Ibrahim Abunayyan, Chief Strategy & Transformation Officer, said: "This was a rewarding year, during which we achieved meaningful results from the intensive and wide-reaching Breakthrough Program turnaround strategy."

"Its implementation has been supported by management and staff across the Kingdom, and its impact is clear. Sales revenue in Saudi Arabia improved by more than 18%, while the roll-out of an upgraded talent structure and improved operating efficiencies drove down costs to increase profitability," stated Abunayyan.

"We’ve put the business in a strong position to capture the opportunities that are available to it - not just in our AC business, but across energy-saving and after-sales services, as well as in our growing Home Appliances offerings. Looking to 2020, we have every intention of building on our improved operating model, while navigating the market for short- and long-term growth opportunities," he added.
 
The Suaid group said the board had made an initial assessment on the impact of the recent global outbreak of Covid-19.

The supply chain of the group is currently dependent on parts and products sourced from the Far East, Europe and US.
 
On its 2020 outlook, Shaker Group said as last year, its key growth avenues include the SEEC high-efficiency AC units initiative, which is positively supporting revenues with the Company having achieved a boost in sales and a competitive share of the programme.-TradeArabia News Service




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