L’azurde Company for Jewellery, a leading Saudi gold and jewellery designer, manufacturer, distributor and retailer in the Middle East, has seen its first-half net profit jump 22% to SR22.2 million ($5.91 million) compared to last year.
The company achieved operating revenues of SR268.8 million, reporting a continued strong performance in the first half of 2022, and reflecting a gross profit of SR172.9 million, an increase of 8% compared to same period of last year.
During the second quarter of 2022, L’azurde has achieved operating revenues of SR117.1 million across all its sales channels and within its geographical reach. This was reflected in a net profit of SR8.5 million in the second quarter of 2022, compared to a net profit of SR8.0 million in the same quarter of the previous year, an increase of 6.3%.
Fashion affordable jewellery
The positive results achieved by the company are mainly due to the commercial and strategic transformation initiatives successfully undertaken by L’azurde group since 2020 when it adopted the strategy of selling fashion affordable jewellery with higher profit margins.
The company’s thriving business success is also attributable to the fast-growing L’azurde e-commerce platforms and reducing the working capital which was translated in a remarkable decrease in financial costs.
The outcomes of these successful initiatives have started to show since the beginning of the first quarter of 2021 and have led to continuous growth and positive results.
Wholesale revenues
Wholesale revenues in KSA increased by 12.6% compared to the same period of the previous year, this noticeable increase was mainly attributed to the successful sales of L’azurde gold by weight in traditional gold souks.
Similarly, the group has reported a strong performance in Egypt in the first half of 2022 where retail operating revenues increased by 5.0% compared to the same period of last year, the increase being mainly due to the growth of revenues in same shops and the opening of new outlets during the past 12 months, as well as the fast-growing e-commerce platforms.
The company’s e-commerce business has in turn secured a distinctive presence this year by generating revenues of SR14.6 million against revenues of SR11.3 million in the first half of 2021, a promising share representing 5.4% of the Group's revenues all in all and 13.2% of retail channel revenues.
Transformation strategy
L’azurde has pursued its successful transformation strategy at a solid pace, and this is reflected in the financial results of the first half of 2022, according to Sélim Chidiac, CEO of L’azurde.
The company has managed to secure a strong position in the market thanks to its transformation strategy which swiftly moved to sell fashion affordable jewelry with higher margins and lower needs of working capital.
Furthermore, the launch of the e-commerce business platform rapidly generated a promising share of business and enhanced its ability to achieve growth. L’azurde seeks to further develop this sector in the coming period, by improving the users’ interfaces, making their purchasing experience easy and enjoyable, introducing new technology, and developing customer relationship management systems and efficient omni-channel strategies.
The company is expected to achieve further promising growth, according to Chidiac, as it endeavours to grow its revenues, by relying on innovation, renewal and new growth opportunities, with a strong portfolio of brands including L’azurde, Tous, Miss L’, L’azurde Instyle and Kenaz. The company is expanding its retail business through new selling points and a better product assortment.-- TradeArabia News Service
