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Group H1 net profit amounted to SAR 24.1 Million, an increased of 73.8%
Riyadh, KSA – Jul 27, 2019: L’azurde Company for Jewelry (“L’azurde”, “the Company”), the largest gold and jewelry designer, manufacturer, distributor and retailer in the Middle East, performed strongly in the first half of 2019 with a growth in gross profit amounting to SAR 176.8 million, an increase of 42% compared to the gross profit of SAR 124.4 million in the same period of last year. After a strong Q1, 2019, L’azurde delivered a solid Q2 with revenues at SAR132.8 Million an increase of 43.1% versus same quarter last year. This is the fifth consecutive quarter where L’azurde raises revenues versus same period last year.
The net profit growth is mainly due to the increase in group operating revenues for the first half 2019 which amounted to SAR 285.8 million, an increase of 37.5% compared to SAR 207.8 million in the same period of last year. Gross Profit as a percent of operating revenues also improved by 2.0% due to cost saving initiatives that contributed in reducing production costs.
In KSA, wholesale revenues increased by 17.1% compared to the same period of last year due to successful new collections and celebrity endorsement campaign, while retail revenues increased by 86.0% mainly due to the consolidation of revenues of the recently acquired TOUS franchisee.
Egypt’s revenues continued to perform strongly with growth of 19.2% in the wholesale channel due to a successful advertising campaign and strong customer uptake of new collections. Egypt’s retail revenues increased by 60.1% compared to the same period of last year due to the successful opening of several new outlets during the last twelve months.
Mr. Selim Chidiac, the Chief Executive Officer of L’azurde noted that the Company had a strong performance during the first half of 2019 due to new successful collections, effective celebrities’ collaborations and the retail growth through the TOUS KSA franchisee acquisition and revenues increase at L’azurde mono-brand retail. He emphasized that the company is gaining traction in the fast growing affordable luxury jewelry segment through the TOUS franchisee acquisition and the new L’azurde Miss L’ sub-brand, which attract a higher return on investment. The positive economic changes in KSA, higher government budget and the employment of women also reflect in the company’s overall performance in KSA. Selim Chidiac added that the Company will continue driving topline at higher gross margin while improving manufacturing productivity by leveraging technology and 3D printing capabilities. Lastly Mr. Chidiac highlighted the Company’s focus on the integration of new acquisition while always considering attractive M&A opportunities where the Group can add value, grow profits and offer attractive returns to its shareholders.