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Shaker Co. Soars with Strategic Triumphs and Financial Wins in Q1 2024

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Robert Tavares

May 12, 2024 - 12:25 pm

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Shaker Co. Achieves Robust Financial Growth in Q1 Amidst Strategic Industry Advances

RIYADH, Saudi Arabia, May 12, 2024 /PRNewswire/ -- In the fervent markets of Saudi Arabia, Al Hassan Ghazi Ibrahim Shaker Co. (Shaker), a stalwart in manufacturing, importing, and distributing air conditioners and home appliances, has declared a triumphant financial narrative for the first quarter ending 31 March 2024. The announcement marks a period of relentless growth for the company, affirming its positive trajectory at the start of the financial year.

Resilient Financial Outcomes: A Testament to Growth

Shaker has unveiled several financial achievements that underscore its dynamic progression and resilience in the industry. Here are the pivotal financial highlights of the quarter:

  • Revenue Enhancement: With an impressive surge of 19.24% year-on-year, Shaker's revenue has hit a substantial SAR 413.24 million. The boost mirrors the augmented sales particularly in the HVAC solutions department, accompanied by stable development across Shaker's assortment of iconic brands.

  • Gross Profit Ascendancy: A 12.24% year-on-year increase in gross profit, amounting to SAR 97.77 million, mirrored the enhanced revenue stream and was underpinned by a propitious mix of product offerings.

  • Operational Income Boost: Shaker observed an uptick in operational income, which rose by 9.59% year-over-year to reach SAR 31.35 million. The climb is primarily founded on the bulging revenues and gross profit, which deftly balanced the augmented Selling, General & Administrative (SG&A) outlays ensuing from heightened strategic marketing maneuvers.

  • Net Profit Acceleration: Net profit attributable to equity owners reached SAR 32.25 million, escalating by 12.09% from the previous year. This peak was catalyzed by robust growth in revenues, superior operational efficacy, and contracted finance expenses.

  • Per Share Earnings: The Earnings Per Share (EPS) saw a parallel growth of 12.09% year-on-year, clinching an improvement at SAR 0.67 per share.

Strategic Moves Paving the Road to Market Dominance

It is clear that Shaker persists in reinforcing the integrity of its strategic plans, driven by distinct market offerings and an unyielding growth strategy. The company continues to finesse its primary business segments, diversifying its brand portfolio, and enhancing operational proficiency. The outcome is a proliferated demand for its superior products and services, cementing its leadership in the HVAC and home appliances sector.

Shaker's commitment to sustainable growth and solidifying financial foundations is evident through the considerable reduction of net debt by 24.08%. Strategic deleveraging paired with the optimized use of short-term loans and Letters of Credit (LCs) have culminated in a substantial cutback in finance costs, which in turn, has favorably resonated in the net profit. Additionally, enhanced inventory control and working capital management have generated robust cash flow from operations, landing at SAR 30.98 million.

Industrial Localization and Technological Innovations

February 2024 was a momentous month for Shaker as it endorsed a landmark Memorandum of Understanding with electronics giant LG and Saudi Arabia’s Ministry of Investment (MISA), aspiring to introduce a new age of local manufacturing of AC compressors in the Kingdom. This strategic move is set to revolutionize the production of the most technologically refined components in AC units. Come March 2024, the company further announced the domestic production of LG Electronics Multi V5 units equipped with Variable Refrigerant Flow (VRF) technology at its LG-Shaker factory based in Riyadh. Validating Shaker’s pursuit of energy efficiency, space conservation, and reliability, this VRF technology is poised to primarily serve expansive residential complexes, as well as commercial and hospitality projects. These pioneering initiatives underscore Shaker’s alignment with Saudi Arabia’s Vision 2030 and fortify its value chain in the HVAC sector.

Pioneering E-commerce Growth

As the retail landscape evolves, Shaker is not merely keeping pace but rather sprinting ahead with its ever-expanding digital presence. Powered by initiatives to enhance the user interface and the scope of online offerings, its e-commerce platform has witnessed an impressive growth spurt. The upcoming transition to the sophisticated SAP S/4HANA ERP system, anticipated to be fully deployed by Q3-FY24, promises to further streamline operational efficiency and e-commerce effectiveness.

The public anticipates the revelation of a new growth strategy slated for mid-2024, which is set to chart Shaker's trajectory towards enduring expansion.

CEO's Vision of Continued Leadership and Innovation

Mohammed Ibrahim Abunayyan, the industrious CEO at Shaker, contends that the triumphs of Q1-FY24 dovetail seamlessly with the gains established in the course of the preceding year. Abunayyan highlights the pivotal aspects that have entrenched Shaker's market leadership—ranging from dedication to core business segments, the agility exhibited in brand diversification, and the steadfast focus on operational efficiency. The CEO lauds the organization's commitment to adapting to changing consumer preferences—a feat accomplished through sweeping advancements within the digital commerce space and improved e-commerce experiences. These, coupled with a pledge to ceaseless innovation underscored by the partnership with LG Electronics and MISA, culminate to position Shaker on the vanguard of industry leadership.

Abunayyan expresses fervent anticipation for the rollout of the new growth strategy slated for release by mid-2024. This pivotal blueprint is poised to navigate Shaker’s future course, anchoring the company firmly at the innovation front and sustaining its growth momentum.

Pioneering Legacy and Commitment to Excellence

Founded in the year 1950, Shaker remains one of the visionaries in Saudi Arabia to initiate a revolution with air conditioning and home appliances. Not only has the company been the importer and distributor of a slew of celebrated international brands—including Maytag, Ariston, Indesit, Midea, Bompani, and LG—but it also prides itself as the exclusive distributor of LG Air Conditioners within the Kingdom. The business unit of Shaker, known as ESCO, has been instrumental in providing comprehensive energy solutions. Marking its prominence on the Saudi Exchange since 2010, Shaker continues to etch its name amongst the preeminent Saudi companies, delivering a spectrum of integrated solutions in air conditioners and home appliances in both the regional and domestic markets. For an in-depth understanding of Shaker’s distinctive services and offerings, please visit their website: http://www.shaker.com.sa/.

Connect with Shaker: Investor and Media Inquiries

Stakeholders and media representatives are encouraged to reach out for further clarification or engagement on the matter. Sam Ryan Siahpolo from Instinctif Partners can be contacted here, or by phone at +971 58 831 8632, for investor queries. Joann Joseph, also from Instinctif Partners, is available for media inquiries here and can be reached at +971 58 257 5490.

The leadership of Shaker is visually exemplified by its CEO Mohammed Ibrahim Abunayyan, and his photograph can be viewed through this link: Shaker CEO Photo.

In Conclusion

Shaker’s robust performance in Q1-FY24 reaffirms the company's steadfast vision and strategy. With significant financial achievements, strategic advancements in the field of manufacturing, and a focus on digital transformation, Shaker continues to pave the way for a future that promises both innovation and sustainable growth. As the region braces itself for visionary changes in line with Saudi Arabia’s Vision 2030, Shaker’s commitment to market leadership, technological advancements, and consumer satisfaction consolidates its position as an industry bedrock for years to come.

SOURCE: Shaker