Lazurde 9M 2024 earnings drop to SAR 24.8M; Q3 loss at SAR 7.2M on one-offs

Lazurde Company for Jewelry reported profit of SAR 24.8 million in 9M 2024, down from SAR 43.5 million in the year-ago period.

During the period, the group’s operating profit fell 6.6% to SAR 63.5 million from SAR 68.0 million in same period of last year due to higher operating expenses related to increased gold prices.

The company stressed that its 9M 2023 results were lifted by one-off gains of SAR 10.1 million from the sale of an administrative office in UAE.

On the other hand, gross revenues, including gold metal value, were SAR 1.69 billion in the first nine months of 2024, an increase of 9.5% from SAR 1.54 billion in the same period of last year.

The group’s operating revenues, which better represent its revenues after excluding gold metal value, amounted to SAR 365.7 million in 9M 2024, up 0.9% from SAR 362.3 million in 9M 2023.

In KSA, retail operating revenues were 17.7% higher than last year due to growth in like-for-like sales of the existing stores. This is in addition to the expansion of its store network by opening several new stores in key locations.

In Egypt, the group is still excelling, as wholesale operating revenues increased by 43.7% in EGP terms when compared to the same period of last year due to strong sales of Lazurde gold jewelry in traditional gold souks. Retail operating revenues grew by 44.3% in EGP terms, supported by growth in like-for-like sales of the existing stores. This is in addition to the expansion of its store network by new openings in key locations.

In Q3 2024, the company turned to a loss of SAR 7.2 million versus a profit of SAR 24.58 million in Q3 2023. This was attributed to recording non-recurring expenses totaling SAR 10.2 million related to changing the company’s distributor in the GCC, earmarking a provision for a legal dispute, and incurring losses from foreign exchanges differences.

Compared with the previous quarter, the company turned to losses against a profit of SAR 4 million in Q2 2024.

Total shareholders’ equity, no minority interest, decreased to SAR 301.2 million as of Sept. 30, 2024, compared to SAR 374.2 million a year earlier.

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