Shaker net profit for 2024 surges 25pc; revenue hits $378m
Saudi-based Al Hassan Ghazi Ibrahim Shaker Company, a leading manufacturer and distributor of heating, ventilation, air conditioning (HVAC) products, announced its full year results for 2024 posting a revenue of SAR1.42 billion ($378 million), up 14.5% over the year before driven by strong HVAC solutions growth across B2B and B2C channels, offsetting softer performance in the Home Appliances segment.
Announcing its financial results for the 12-month period ended December 31, 2024, Shaker Company said its net profit surged to hit SAR82 million, up 24.70% YoY, driven by higher revenues and gross profit, reduced finance costs, lower zakat expense, and increased share of profit from LG-Shaker factory.
Its gross profit stood at SAR 346.52 million for FY24, up 9.05% YoY in line with higher revenues.
However, the Saudi group's operating income for FY2024 witnesse a decline, falling to SAR82.17 million, down 7.83% YoY, due to strategic investments in staffing and higher impairment losses on trade and other receivables.
On the Q4 performance, Al Shaker said its revenue stood at SAR298.91 million, up 15.16% over the previous year, while its gross profit rose 2.2% to hit SAR76.72 million.
The group's net profit surged by 280% to hit SAR15.17 million. However, its operating income fell to SAR 16.70 million, down 22.82% YoY.
On the resulst, CEO Mohammed Ibrahim Abunayyan said: "We are proud to deliver record full year results since 2016. The year 2024 was also our sixth consecutive year of revenue and net profit growth. We grew our core business, added new world-class brands to our Home Appliances portfolio, and expanded our retail and e-commerce presence."
"Building on our momentum and success, we developed our new strategic roadmap, Elevate 2027, to propel us into the next phase of our growth. As part of this strategy, we will leverage our end-to-end value chain to further grow our core business, while also tapping into strategic adjacencies," he stated.
"We have a unique position in the region, and we are going to leverage it to further solidify Shaker as a regional powerhouse in manufacturing, logistics, retail, and servicing, while establishing the company as a key participant in Saudi Vision 2030," he added.
Shaker's financial results for Q4 and full year 2024 reflect strong momentum in its HVAC solutions segment. The HVAC solutions segment delivered impressive growth as the company successfully increased its B2B business participation to actively meet the increased demand from the Kingdom's megaprojects and other infrastructure developments.
Shaker's B2C segment continued to see stable demand with strong HVAC sales offsetting softening sales in the Home Appliances segment. Shaker continues to expand its core exclusive brand portfolio, strengthening its market position and enhancing customer reach.
In terms of financial health, Shaker achieved a significant 34.41% reduction in net debt YoY, supported by strong cash generation.
During FY24, the Company generated SAR 161.48 million in cash from operations, a result of strong profitability and improvements in working capital, which have strengthened Shaker's financial position.
On its future plan, Shaker said its expanding retail footprint is set to further contribute to this momentum.
The group had opened its 10th store in Jizan in December last year and by the end of 2025, Shaker expects to open five additional stores for a total of 15 Shaker branded stores across the kingdom to further enhance its reach in the B2C channel.- TradeArabia News Service
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