Business & Money | Wednesday 31 October, 2018 12:19 pm |

L’azurde Company for Jewellery (“L’azurde” or “the Company”),the largest gold and jewelry designer, manufacturer, distributor and retailer in the Middle East,today announced its financial and operational results for thethird quarter ended 30 September 2018. 

 

The Company reported operating revenues of SAR98.5m for the third quarter of the year, an increase of 29.3% on Q3 2017 ofSAR 76.2m. L’azurde’s Q3 revenues in Egypt continued to perform strongly with an increase in the wholesale business of 30.7% and in the retail business of 170.0% due to a positive recovery in the economy and purchasing power, as well as opening new shops. In KSA, Q3 wholesale and retail revenues have increased by 16.8% and 10.0% respectively compared to the same quarter in 2017, underpinned by new collections and marketing activities.

 

The increase in revenues resulted in operating income of SAR 15.8m, a growth of 47.0% on Q3 last year of SAR 10.7m, and net income of SAR 3.7m, increasing by 6.37 times versus a net income of SAR 0.5m in Q3 2017.

Commenting on the results, Sélim Chidiac, CEO of L’azurde, said: “Overall, we are very pleased with those results which indicate an inflexion point in our performance and the fact that our efforts are translating into better profits. The Egyptian market has continued to recover strongly since the beginning of this year while in KSA the focus on products innovation and strong marketing and promotions raised our revenues and profits. In addition, our focus on developing the retail business with its higher returns on investment is bearing fruit and, when combined with our other strategic initiatives, we believe that L’azurde is in a strong position to deliver its mid to long term growth ambitions.”

 

L’azurde signed in august the Share Purchase Agreement to acquire 100% of the equity of Izdiad Commercial Company of Arabia (“Izdiad”), the KSA franchisee of the TOUS international fashion jewelry brand. This represents a major development for the Company, establishing a strong presence in the fastest growing segment of the jewelry industry and adding a new source of growth and profitability. Izdiad has demonstrated continuous solid growth in revenues and profits since its establishment, with its 2017 net income reaching SAR18.8 Million. 

 

“As part of our retail growth plans, we are delighted by  the acquisition of the KSA franchisee for the global TOUS brand, a world leader in affordable jewelry, expanding our footprint in the accessible fashion jewelry segment. We are confident that this acquisition will further strengthen the position of the L’azurde Group and have a positive impact on our revenues and profits.” added Chidiac

 

L’azurde’s interim financial and operational results for the quarter ended 30 September 2018 can be found here: http://lazurde.com/quarterly-financial-statements/