Riyadh, Saudi Arabia, 07 March 2023: Al Hassan Ghazi Ibrahim Shaker Co. (“Shaker”, the “Group” or the “Company”), Saudi Arabia’s leading importer, manufacturer, and distributor of Air Conditioners and Home Appliances, announced its financial results for the full year 2022, marking a period of continued transformation and growth across its operations. 

 

 

Full Year 2022

 

• Revenue of SAR 1.04 billion, up 3.44% on FY21, driven by strong growth in the HVAC solutions segment.

• Gross profit of SAR 237.64 million, up 10.24% on FY21, driven by higher sales and portfolio mix optimization.

• Operating income of SAR 42.36, up 15.62% on FY21, driven by lower impairment loss on trade and other receivables, offset by higher fixed costs. 

• Net profit of SAR 32.83 million, up 19.72% on FY21, driven by higher income from operations and lower zakat and tax.

• EPS* of SAR 0.68, up 56.38% on FY21.

 

*Post-capital reduction in Q2-FY22.

*Discontinued operations are excluded from the year over year analysis. 

 

Fourth Quarter 2022

 

• Revenue of SAR 210 million, down 7.43% on Q4-FY21, driven by softer Home Appliance performance, partially offset by double-digit growth in the HVAC solutions segment.

• Gross profit margin improved by 120 basis points year-on-year (YoY) to 25.4% in Q4-FY21 driven by portfolio mix optimization and improvement in management of cost of goods sold.  

• Weaker performance YoY is due to higher finance costs from higher SIBOR rates, increased selling and distribution expenses, and seasonality trends impacting demand.

• This was partially offset by lower impairment loss on trade and other receivables, higher net profit from investment in an associate, and lower zakat and income tax expense.

 

Shaker delivered yet another year of growth and profitability in 2022, building on the continued execution of the strategy set out in 2020. Both operationally and financially, the Company made significant progress in key areas to position for future growth.

 

The Company has successfully cleared its accumulated losses via a capital decrease in the first half of the year, providing a stronger financial foundation for future growth and development. In addition, Shaker has successfully repaid its long-term debt and maintained profitability and growth which enabled the Company to cancel the proposed offering of rights issue shares in the fourth quarter of 2022.

 

During the second half of the year, the Company successfully divested its holding in “Energy Management Services Emirates LLC (EMS)” which operates in the UAE, and listed its shares in “New Vision for Electronics and Electrical Appliances (NV)” as held for sale, which operates in Jordan, as part of Shaker’s continued focus on portfolio optimization of its core business in KSA. 

 

The Company has also strengthened its long-standing strategic partnership with LG through an expanded supply agreement that includes LG’s complete range of home appliance and home entertainment products.

 

Shaker’s commitment to manufacturing energy efficient products in the Kingdom has propelled the Company to comply and surpass the industry’s new SEER standards and emerge as a leader in energy efficient home appliances and HVAC solutions. 

 

As a proud supporter of the Saudi Made initiative and a leading exporter to more than 20 countries including the GCC and Africa, Shaker remains committed to promoting local manufacturing and driving economic growth in Saudi Arabia through increased utilization of local content in its supply chain.

 

In addition, Shaker has embarked on enhancing its systems and business operations by upgrading its enterprise resource planning (ERP) to S/4 Hana, the latest technology that SAP offers.

 

 

Mohammed Ibrahim Abunayyan, Chief Executive Officer at Shaker, said: 

 

“Shaker delivered yet another year of growth and profitability. Despite the challenging market conditions in the second half of the year, we have continued to execute our strategy, optimizing our portfolio, enhancing our operations, and strengthening our partnerships. We are proud to be leading the way in energy-efficient home appliances and HVAC solutions, and remain committed to promoting local manufacturing and driving economic growth in Saudi Arabia. With the successful clearance of our accumulated losses, repayment of long-term debt, and maintenance of profitability and growth, we are well-positioned to continue our journey towards becoming the region’s leading provider of high-quality, energy-efficient home appliances and HVAC solutions.

 

As we move forward into 2023, we remain focused on delivering long-term sustainable growth and value creation for our stakeholders. We are confident that our strategic investments and initiatives in diversification, the expansion of our product portfolio, the optimization of our operations, and the enhancement of our digital capabilities, will continue to drive innovation and differentiation in the market. We will also continue to prioritize our commitment to the Saudi Made initiative and local content and seek to further strengthen our partnerships with key suppliers and customers. As part of this commitment, we are exploring plans to manufacture all air conditioners sold in the Saudi market locally at the state-of-the-art LG Shaker factory in Riyadh. With a solid financial foundation, a strong balance sheet, a dedicated and talented team, we are well-positioned to capture opportunities and navigate challenges that may arise in the future.”