Lazurde swings to SAR 26 mln net profit in 9M 2021

Lazurde Company for Jewelry swung to a net profit after Zakat and tax of SAR 26 million for the first nine months of 2021, compared to a net loss of SAR 86.6 million in the same period a year earlier.

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

Retail revenues in Saudi Arabia increased by 29.2% year-on-year (YoY), due to higher revenues from some shops, the successful launches of Miss L’ and Lazurde Instyle brands, the new fast growing Lazurde e-commerce platforms, opening of new outlets in the last 12 months, and easing of COVID-19 precautionary measures. Meanwhile, in Egypt, retail revenues increased by 43.1% YoY, driven by the opening of new shops and the successful launches of Miss L’ and Lazurde Instyle brands. 

In Saudi Arabia, wholesale revenues were 61.4% higher than same period of last year, backed by the successful launch of Lazurde Instyle brand. 

Wholesale revenues in Egypt grew by 70.8% compared to same period of last year as demand for gold jewelry remained high. 

The group launched the new fast growing e-commerce business in March 2020, which has already delivered SAR 17.5 million revenues in the first nine months of 2021. This represents a share of 4.5% of the group’s operating revenues and 10.4% of retail revenues.

In Q3 2021, the company turned to a net profit after Zakat and tax of SAR 7.8 million due to higher operating and total revenues from the group.

On a sequential basis, the company’s Q3 2021 declined 2.5%.

Shareholders' equity, excluding minority rights, at the end of 9M 2021  amounted to SAR 460.7 million, compared to SAR 332.6 million in the year-earlier period. 

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