اعلان شركة الحسن غازي إبراهيم شاكر عن النتائج المالية الأولية للفترة المنتهية في 2021-09-30 ( ت

1. Q3 revenue of SAR 260.9 million improved by 5.4% or SAR 13.4 million compared to the previous year's Q3 revenue of SAR 247.5 million.

2. Top-line growth resulted in gross profit growth of 8.8% or SAR 4.6 million

3. Share of profit from associates increased by 23.0% or SAR 1.4 million

1. Overall expenses reduced by 2.8% or SAR 1.2 million which includes reversal of impairment on trade receivables.

2. Share of profit from associates increased by SAR 4.2 million

3. Expanding product portfolio and growth strategy implemented in the 9-month period

1. Sales revenue for the period increased by 13.9% year-on-year

2. Gross profit increased by 14.3% year-on-year

3. Operating profit of SAR 27.7 million in 9M 2021 compared to SAR 6.3 million in 2020

a) The unrealized profit on upstream transactions between the Company and its associate were not eliminated in prior years. Therefore, the investment in associate and share of profit from the associate balances have been corrected retrospectively.

b) Included within trade receivables was a receivable balance amounting to SAR 28.64 million in relation to advisory services offered by one of the Group's subsidiaries. Based on the memorandum of understanding between the subsidiary and its customer, the fees were contingent in nature. Further, the probability of realizability of these fees was low and did not meet the recognition criteria. Therefore, the revenue and the related receivable balance should not have been recognized in the previous financial years. These balances are corrected retrospectively and the related expected credit loss of SR 7 million, which was recognized during the three-month period ended March 31, 2021 is also reversed and its effect has been captured as part of the nine-month period ended 30 September 2021 financial results.

c) The presentation of the statement of financial position is changed retrospectively for better understanding and presentation by segregating prepayments and other receivables from trade receivables. The effects are the reclassification of SR 4.2 million as at December 31, 2020 (January 1, 2020: SR 3.5 million) from trade receivables to prepayments and other receivables.

The total cashflows from operating, investing, and financing activities were not affected because of these restatements. The effects of the restatements in the statement of cash flows are primarily in adjustments for non-cash items and changes in working capital within cash flows from operating activities and hence, are not disclosed separately.

Shaker achieved revenue of SAR 260.85 million, growing by 5.4% as compared to Q3 2020, and decreasing by 9.9% compared to the previous quarter. Gross profit of SAR 57.29 million increased by 8.8% year-on-year. Shaker's Q3 net profit reached SAR 12.3 million, an improvement from a net profit of SAR 3.8 million in Q3 2020.

The accumulated losses to capital ratio improved to 23.4% in 2021 from 27.7% in 2020 after re-statement of financials of previous year. In this instance, the CMA's rules and regulations for listed companies with total accumulated losses of 20% or more of capital will be applied.

Earnings / (Loss) calculation per Share:

All figures are in (Thousands) Saudi Arabia, Riyals

Profit for the Q3 2021 SAR 12,337

Less: Non-Controlling interests SAR 305

Profit attributable to owners of the company (A) SAR 12,032

Number of shares (B) 63,000

Profit per share (calculated (A) divided by (B)) SAR 0.19

Profit for the Q3 2020 SAR 3,809

Less: Non-Controlling interests SAR 213

Profit attributable to owners of the company (C) SAR 3,596

Number of shares (D) 63,000

Profit per share (calculated (C) divided by (D)) SAR 0.06

Outlook and strategy

The Company continues to roll out its new strategy that will take the business through to 2023, prioritising the diversification of the brand portfolio and becoming the preferred choice for partners and customers in the Saudi consumer electronics and home appliances sector, while continuing to maintain its market leadership in the Saudi AC market.

Opportunities continue to emerge as a result of government projects and real estate initiatives and Shaker continues to capture a healthy share of these contracts. Mega projects, including Neom, Amaala and Red Sea Development, remain a steady and important source of opportunities for Shaker's AC business in tandem with energy efficiency programs by the government, including Saudi Energy Efficiency Center's ("SEEC") high-efficiency AC initiative, and Tarsheed, the Saudi government's National Energy Services Company.

Improving market share across the segments in which Shaker operates remains a priority for the management team. In the nine-month period, Shaker has succeeded in growing market share in the Home Appliance segment while steadily growing the AC segment. Business segment sales teams continue to regularly exceed monthly sales targets against forecasts, demonstrating healthy market appetite for Shaker's products and services.

Shaker remains agile in its approach towards brand acquisitions, seeking first to complement the strong line-up of brands already on offer. Consumer demand for energy efficient Home Appliances continues to increase as the market recovers and retail stores re-open, along with the recovery of consumer purchasing power.