Lazurde turns to SAR 86.6 mln net loss in 9M 2020

Lazurde Company For Jewelry turned to a net loss after Zakat and tax of SAR 86.6 million for the first nine months of 2020, compared to a net profit of SAR 24.4 million in the same period a year earlier.

The company attributed the earnings to lower total and operating revenues from the group.

In Saudi Arabia, wholesale revenues were 53.3% lower than same period of last year, impacted by the complete closure of gold souks and malls since mid-March to end of April, reduced working hours in May and June due to COVID-19, and the tripling of VAT to 15%.

Wholesale revenues in Egypt declined by 29.6% compared to same period of last year due to reduced working hours in malls and souks in first half of the year due to COVID-19 and the sharp increase in gold price.

Retail revenues in Saudi Arabia decreased by 42.8% due to complete closure of malls to contain the spread of COVID-19. Meanwhile, in Egypt, retail revenues increased by 20.1% organically, driven by the opening of nine new locations in 2020 for Miss L’ and diamond jewelry.

In Q3 2020, the jewelry designer turned to a net loss after Zakat and tax of SAR 18.8 million due to lower operating and total revenues from the group.

On a sequential basis, the company narrowed its Q3 2020 losses driven by the strong recovery in revenues and the one off cost of SAR 34.7 million in Q2 2020 related to the recall of some of the heavyweight products not meeting the latest consumer trends.