L’AZURDE Company for Jewellery, the largest gold and jewelry designer, manufacturer, distributor and retailer in the Middle East, today announced its financial and operational results for the third quarter ended 30 September 2018.

The company reported operating revenues of SR98.5m for the third quarter of the year, an increase of 29.3% on Q3 2017 of SR76.2m. 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 SR15.8m, a growth of 47.0% on Q3 last year of SR10.7m, and net income of SR3.7m, increasing by 6.37

times versus a net income of SR0.5m 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, 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 SR18.8 million. — SG