Lazurde 9M 2023 profit jumps 39% to SAR 43.5 mln; Q3 at SAR 24.6 mln

Lazurde Company for Jewelry reported a 39% leap in 9M 2023 net profit to SAR 43.5 million, compared to SAR 31.4 million in the year-ago period.

Wholesale operating revenues in Saudi Arabia rose 4.7% year-on-year (YoY) due to strong sales of L’azurde gold in traditional gold souks.

Meanwhile, retail operating revenues were up 4.3% YoY on growth in like-for-like sales of the existing stores and the upgrade of the stores network by opening new stores in better locations.

In Egypt, retail operating revenues grew by 39% YoY in EGP terms but lower by 18% compared to last year after translation to SAR. However, due to increasing sales prices to cope with the EGP devaluation, net profit of Egypt retail increased by 16% YoY.

Group operating expenses of SAR 163.2 million were 12.5% lower than the same period of last year of SAR 186.6 million due to cost control initiatives and positive effects of EGP devaluation.

In Q3 2023, net profit rose 167.4% to SAR 24.60 million from SAR 9.20 million in Q3 2022.

Group total revenues, including gold metal value, were SAR 577.8 million in the third quarter of 2023, an increase of 0.7% compared to SAR 573.9 million in the same quarter of last year. It is worth noting that the Group does not make profits or losses from the value of the sold gold as a metal.

The group's operating revenues amounted to SAR 123.3 million in the third quarter of 2023, a decrease of 9.6% compared to SAR 136.4 million in the same quarter of last year due to the translation of revenues of Egypt at a lower exchange rate despite the strong increase in sales value in EGP.

In Saudi Arabia, wholesale operating revenues were 1% higher than the last year, while retail operating revenues grew by 2% mainly due to growth in like-for-like stores and the optimization of the stores network by opening new stores in better locations as part of the group’s plan to optimize and expand its retail network in Saudi Arabia.

In Egypt, retail operating revenues grew by 27.5% in EGP but declined by 21.0% compared to same quarter of last year after translation to SAR. However, due to increasing sales prices to cope with the EGP devaluation, net profit of Egypt retail increased by 10% compared to the same quarter of last year.

Compared with the previous quarter, Q3 earnings soared from SAR 7.23 million.

Total shareholders’ equity, no minority interest, decreased to SAR 374.2 million as of Sept. 30, 2023, compared to SAR 427.8 million a year earlier.

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