L’azurde’s profits up to SR34.2 mln during 2022, by 55.4%‎

L’azurde Company for Jewelry revealed an increase in net profit after zakat and tax during the year ending on December 31, 2022 to 34.2 million riyals, compared to 22 million riyals in the previous year, at a rate of 55.4%. This came after today’s announcement of the annual financial results ending in 2022-12. -31.

Operational profit amounted to 85.6 million riyals during the year ending on December 31, 2022, compared to 81.5 million riyals in the previous year, an increase of 5%.

Total shareholders’ equity “without minority rights” amounted to 389.4 million riyals in the current year, compared to 454.2 million riyals in the previous year, a decline of 14.2%.

Earnings per share in the current year reached 0.59 riyals, compared to 0.44 riyals in the previous year.

In 2022 AD, L’azurde continued its strong and steady performance since the implementation of its transformational initiatives in 2021 AD. This was reflected in achieving a net profit of 34.2 million Saudi riyals in 2022 AD, compared to 22.0 million Saudi riyals in 2021 AD.

The following factors mainly explain how the net profit was achieved in 2022:

1. The group’s total revenues, including the value of gold, amounted to 1,999.6 million riyals in 2022, an increase of 1.4% compared to 1,971.5 million Saudi riyals in the previous year. It is worth noting that the group does not realize profits or losses from selling gold as a metal.
2. The operating revenues of the group after deducting the value of the gold metal to better represent the group’s revenues amounted to 518.7 million Saudi riyals for the current year, an increase of 2.7% compared to 505.3 million Saudi riyals last year.

In Saudi Arabia, wholesale operating revenue increased by 10.4% from last year, due to strong sales of L’azurde gold jewelry in traditional gold markets.

In Egypt, operational revenues for wholesale sales grew by 18.6% in Egyptian pounds, equivalent to 1.0% after conversion into Saudi riyals, compared to last year. The company was able to increase its sales and greatly succeeded in offsetting the effects of the drop in the exchange rate of the pound against the Saudi riyal.

Retail operational revenues in Egyptian pounds grew by 25.3%, equivalent to 2.8% after conversion into Saudi riyals, compared to last year. This is mainly due to revenue growth in existing stores, the opening of new outlets in the past twelve months, the rapid growth of e-commerce platforms and the increase in selling prices to offset the lower exchange rate of the pound against the Saudi riyal.

The Group’s e-commerce business generated revenues of SAR 33.3 million in 2022 (2021: SAR 24.3 million), an increase of 37%. The group’s e-commerce revenue represents a strong promising share of 6.4% of the group’s total operating revenue and 14.7% of the group’s retail revenue in 2022 AD (2021 AD: represents 4.8% of the group’s operating revenue and 10.8% of the group’s retail revenue). ..

1. The group’s total profit of 327.0 million Saudi riyals for the year 2022 increased by 6.3% from the group’s total profit for the previous year of 307.7 million Saudi riyals, mainly due to the increase in operating revenues and the improvement in the gross profit margin significantly to 63.0% in the current year compared to by 60.9% in the previous year. This reflects the group’s ability to maintain and develop profit margins while also increasing its revenues despite the depreciation of the Egyptian pound.
2. Operational profit of the group, which amounted to 85.6 million Saudi riyals for the current year 2022, increased by 5% compared to the operating profit, which amounted to 81.5 million Saudi riyals in the previous year.
3. Financing costs increased in the current year 2022, reaching 32.0 million Saudi riyals, by 2.4%, compared to financing costs that amounted to 31.2 million Saudi riyals in the previous year, despite the increase in global interest rates.
4. Net profit for the year 2022 amounted to 34.2 million riyals, compared to a net profit of 22.0 million riyals for the previous year, an increase of 55.0%, mainly due to the increase in revenues and the increase in total profit.
5. The total loss of comprehensive income attributable to the company’s shareholders for the current year amounted to 49.0 million Saudi riyals, compared to comprehensive income of 19.6 million Saudi riyals for the previous year, as a result of unrealized currency differences losses on investments in Egypt. It is worth noting that investments in Egypt mostly represent factories and other assets for the purpose of production and revenue generation and not for the purpose of investment, and the decline in the value of these investments as a result of the depreciation of the Egyptian pound does not affect the ability of these assets to produce and generate revenues. My time and my notebook are low and not verified
6. The basic earnings per share attributable to the company’s shareholders for the current year 2022 amounted to 0.59 Saudi riyals, compared to 0.44 Saudi riyals in the previous year, an increase of 35%.
7. The total shareholders’ equity on December 31, 2022 AD amounted to 389.4 million Saudi riyals, compared to 454.2 million Saudi riyals on December 31, 2021 AD, a decrease of 14.3%, and this is due to the payment of dividends, and the negative movement in the currency translation reserve due to the loss of foreign currencies Unrealized investment in Egypt, as mentioned above.