RIYADH: Saudi Arabia-listed jewellery firm L’azurde Company for Jewelry on Wednesday reported a 14 percent year-on-year rise in net income during the first half of 2016. Net income rose to SR72.6 million ($19.3 million) by June 30, up from SR63.7 million ($16.9 million) during the same period in 2015.
The overall rise was the result of a 24.3 percent growth in net income in the first quarter of 2016, and a 5.1 percent decline in net income in the second quarter, compared to the corresponding period of the previous year. This was mainly due to a weaker consumer spending environment, L’azurde said.
It noted “challenging market conditions”, and said the company supported sales at its mono-branded retail shops with “strong” promotions and new products leading to a 4.7 percent rise in revenues in the retail division during the six-month period compared to the first half of 2015. This, however, was partially offset by a 10.3 percent decline in revenues within the group’s wholesale division over the same period. To continue growing its retail business, L’azurde said it had signed lease agreements to open four new showrooms in malls across Saudi Arabia over the next six to 12 months.
CEO Sélim Chidiac said: “Despite tough market conditions with lower levels of consumer spending, L’azurde’s performance in the first half of 2016 demonstrated a 14 percent increase in net income to SR72.6 million. “As is normal, we have seen seasonality within the results as the company achieved highest sales and profits in the first quarter of the calendar year. “Growing sales in our own retail shops has been successful and we will maintain the focus on the retail expansion with the signing of lease agreements to open four new showrooms across KSA. “We will continue to support our wholesale business, driving regional expansion plans and evaluating brand extensions and market gaps.”
L’Azurde listed on the kingdom’s Tadawul stock exchange on June 29, becoming the first retail company to go public in Riyadh in more than a year. It sold 30 percent (12.9 million) of its shares in an initial public offering (IPO) raising SR477.3 million ($127 million). L’Azurde makes 18- and 21-carat gold, diamond and precious gemstone jewellery in Saudi Arabia and Egypt and distributes to wholesale markets in 20 countries across the Middle East and North Africa (MENA). It had a market capitalisation of SR1.462 million ($389, 841) as of Wednesday July 27.
