AC manufacturer Shaker Group reports Q3 revenue growth of 42.5%
Management accredits the robust increase in revenues, and a significant reduction in net and operating losses, to the success of its Breakthrough Program, which focuses on strengthening and broadening revenue streams
Shaker Group, Saudi Arabia’s importer, manufacturer and distributor of Air Conditioners and Home Appliances, has announced its financial results for the period ended 30 September 2019.
Third-quarter revenue of SAR 247.8 million grew by 42.5% year-on-year, and at SAR 698.7 million for the nine-month period improved by 16.2% from 2018. Gross profit of SAR 49.1 million in Q3 improved by 79.7% year-on-year. The Group’s Q3 net loss of SAR 6.7 million narrowed by 85.7% year-on-year, with an operating loss of SAR 6.2 million decreasing by 80.3%. The nine-month net loss for 2019 was SAR 46.3 million, narrowing by 55.1% year-on-year.
Management accredits the robust increase in revenues, and a significant reduction in net and operating losses, to the success of its Breakthrough Program, which focuses on strengthening and broadening revenue streams while rationalizing costs and improving operating efficiencies.
Eng. Azzam Saud Almudaiheem, chief executive officer at Shaker Group, commented: “These results are very pleasing and are a testament to the material impact that our Breakthrough Transformation Program has had in the last nine months. Now, we are focusing our efforts on seeking to achieve more competitive gross margins. In recent months, we have carved out a dominant share of AC sales related to the SEEC program, and this will remain another important growth avenue for our Saudi operations in the near- and medium-term.”
Almudaiheem continued: “We have established a theme of continuous improvement, which has provided us with a healthy pipeline of major project opportunities, as well as energy audit and retrofitting mandates for our ESCO business unit. Meanwhile, we have boosted the strength of our B2B salesforce with senior appointments that will drive revenue growth and bring broader and deeper experience to our team. We are looking forward to completing the year and continuing our transformation, entering an exciting new chapter for the Group in 2020.”
Mohammed Ibrahim Abunayyan, chief strategy & transformation officer at Shaker Group, commented: “What is most promising about our latest results is the tangibility of the impact of our Breakthrough Transformation Program. The implementation of the Program has been management’s main priority in 2019, and now we are seeing it delivering the expected results. We have achieved a marked improvement in sales across all segments and in operating efficiencies by reducing costs, enhancing our workforce and optimizing working capital management. We continue to push hard on the execution of our transformation plan, ensuring we remain on track across our KPIs during future periods.
"On a year-on-year basis – for both the Q3 and nine-month periods – top and bottom line results have improved considerably. We have achieved this by an unrelenting focus on boosting sales performance at both structural and strategic levels. We therefore have reason to expect further achievements in relation to the Breakthrough – as well as greater exploitation of market opportunities – as we complete the year and move into 2020.”