‎“L’azurde” profits decreased to SR12 mln during Q1, by 15.3%‎

L’azurde Company for Jewelry revealed a decrease in net profit after zakat and tax in the first quarter to 11.6 million riyals, compared to 13.7 million riyals in the same quarter of last year, by 15.3%. This came after today’s announcement of the preliminary financial results for the period ending in 2023-03. -31 (three months).

The operational profit amounted to 25.1 million riyals in the first quarter, compared to 30.1 million riyals in the same quarter of the previous year, a decrease of 16.6%.

The total shareholders’ equity “without minority rights” amounted to 378.8 million riyals in the current period, compared to 437.5 million riyals in the same period last year, a decrease of 13.4%.

Earnings per share in the current period reached 0.2 riyals, compared to 0.24 riyals in the same period last year.

In the first quarter of 2023, L’azurde continued to deliver strong and consistent performance since the implementation of the transformation initiatives in 2021. This was reflected in achieving a net profit of 11.6 million riyals in the first quarter of 2023.

The following factors mainly explain how the net profit for the first quarter of 2023 was achieved:

1. The group’s total revenues, including the value of gold, amounted to 496.3 million riyals in the first quarter of 2023, a decrease of 19.2% compared to 614.5 million riyals in the same quarter of last 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 126.1 million riyals in the first quarter of 2023, a decrease of 16.9% compared to 151.7 million riyals in the same quarter of last year as a result of transferring Egypt’s revenues at a lower exchange rate.

In Saudi Arabia, wholesale operating revenue increased by 20.4% year over year due to strong sales of L’azurde Gold in the traditional gold markets.

In Egypt, wholesale operating revenues grew by 4.0% in Egyptian pounds, but decreased by 43.5% after converting to Saudi riyals due to the depreciation of the Egyptian pound, compared to the same quarter last year. The company continues to gradually increase its sales prices in Egypt to keep pace with the depreciation of the Egyptian pound.

In Egypt, retail operating revenues grew by 47.0% in Egyptian pounds due to higher sales prices to keep pace with the devaluation of the Egyptian pound, but decreased by 18.6% after converting into Saudi riyals due to the devaluation of the Egyptian pound, compared to last year. The company will continue to gradually increase prices to compensate for the impact of the devaluation of the Egyptian pound.

The group’s e-commerce business generated revenues of 7.9 million riyals in the first quarter of 2023 (Q1 2022: 7.4 million riyals), an increase of 7.5%. Group e-commerce revenue represents a strong and rising promising share of 6.3% of total group operating revenue and 14.8% of group retail revenue in the first quarter of 2023 (Q1 2022: representing 4.9% of group operating revenue and 12.5% of the group’s retail revenue.