L’azurde reports profits of SAR 9m in Q1 2018

L’azurde Company for Jewellery (“L’azurde” or “the Company”),the largest gold and jewelry designer, manufacturer, distributor and retailer in the Middle East,announced today interim financial and operational results for thequarter ended 31 March 2018. 

The Company reported operating revenues of SAR115.0m for the first quarter of the year, an increase by 53.2% on revenues generated in the previous quarter Q4 2017 (SAR 75.1m). The increase resulted in a net income of SAR 9m, a significant increase on the SAR 2.6 million net income the company made in Q4 2017. However, despite that the net income decreased by 58.9% compared to the same quarter of 2017. 

L’azurde’s retail sales in KSA increased by 2.8% as its retail operations at Saudi international airports expanded. Q1 revenues in Egypt recovered strongly with an increase in the wholesale business by 52.8% and in the retail business by 176.5% due to a positive recovery in the economy and purchasing power, as well as opening new shops. 

Commenting on the results, Sélim Chidiac, CEO of L’azurde, said: “In the first quarter of 2018, we have continued to adapt to a challenging market with lower consumer spending in our geographies. We have taken proactive measures to drive volume through exceptional jewelry products with an emphasis on more affordable and profitable lines as well as expanding distribution. The Egyptian market has started to recover strongly since the beginning of this year. In KSA, we believe that the macroeconomic changes, government diversification initiatives, employment of women, young population and increased foreign investments will support our industry, consumer confidence and spending.”

“We look forward to positive news in Q2 as we pursue inorganic expansion opportunities, to acquire a business of a well-known international retail jewelry brand in KSA,” added Chidiac.