Shaker Group announces first half 2025 results
Financial Highlights:
Revenue of SAR 368.77 million in Q2 2025, up 6.9% year-on-year (YoY), and SAR 769.19 million in H1 2025, up 1.4% YoY, supported by steady H1 2025 performance of 2.3% YoY growth in the HVAC segment, partially offset by a 1.7% YoY decline in the Home Appliances segment.
Gross profit of SAR 92.62 million in Q2 2025, up 11.3% YoY, and SAR 193.25 million in H1 2025, up 6.8% YoY, driven by cost efficiencies and an improved product mix.
Operating income of SAR 19.69 million in Q2 2025, up 70.7% YoY, and SAR 44.76 million in H1 2025, up 4.4% YoY, reflecting effective cost management, partially offset by planned investments in talent.
Net profit 1 of SAR 19.90 million in Q2 2025, up 21.0%, and SAR 47.10 million in H1 2025, down 3.3% YoY, mainly due to a lower share of profit from associates, partially offset by reduced finance costs.
Net Debt reduced by 16.4% YoY to SAR 269.60 million, with the net debt to EBITDA ratio improving to 2.19x in H1 2025 from 2.45x in H1 2024, consistent with our financial strategy of continued deleveraging and improving capital structure efficiency
1: Attributable to equity owners
Mohammed Ibrahim Abunayyan, Chief Executive Officer at Shaker, said:
"The first half of 2025 marked Shaker's strongest performance since 2017, driven by disciplined execution and a sharp focus on long-term value creation. We expanded our retail footprint by adding a new store in Q2, bringing the total to 12 and moving steadily toward our Elevate 2027 goal of reaching 15 stores by the end of the year. We also introduced customer-centric innovations, including EZ Pay in collaboration with BSF, giving shoppers greater flexibility. We took meaningful steps to optimize our capital structure, reducing debt and positioning the Company for long-term financial flexibility. For the first time since 2016, we distributed dividends to our shareholders, demonstrating our financial strength and commitment to sustained value creation. Elevate 2027 is reshaping how we operate, how we serve customers, and how we grow. The momentum is strong, and we are determined to carry it forward.'
Financial Updates
Shaker achieved its strongest first-half results in terms of revenue and gross profit since 2017, marking a key milestone in its growth journey. Revenue growth in H1 2025 was supported by consistent performance across key segments. HVAC revenue grew by 2.3% YoY to SAR 533.98 million in H1 2025, mainly driven by Q2 2025 growth of 3.0% YoY, supported by seasonal demand and increasing mega project activity. Home Appliances revenue declined slightly by 1.7% YoY in H1 2025 to SAR 231.04 million. This was due to an 11.8% YoY drop in Q1 2025 which was partially offset by Q2 2025 with a strong recovery of 17.7% YoY, due to better product availability and new product offerings from Black & Decker, Samsung, and Midea. Other revenue grew by 206.5% YoY to SAR 4.17 million in H1 2025, driven by the initial ramp-up from new ventures. This is aligned with the Group's Elevate 2027 strategy, reinforcing core service pillars and unlocking adjacent revenue streams.
B2B contributed about 41% of total revenue and is supported by rising demand from mega projects across strategic sectors, in line with the Group's focus on increasing tender participation. B2C contributed about 53% of total revenue and remained a key driver of overall performance, fueled by strong consumer response to newly introduced global brands and the continued expansion of Shaker's retail presence.
Gross profit increased by 6.8% YoY to SAR 193.25 million which was driven by higher revenues and optimization of the portfolio mix, supported by efficient management of cost of sales.
Operating profitability grew by 4.4% YoY in H1 2025 to reach SAR 44.76 million, supported by increased revenues partially offset by an increase in employee-related costs as the Company continued to invest in strengthening its talent base to build operational capacity and drive long-term growth.
Net profit stood at SAR 47.10 million in H1 2025, reflecting a 3.3% decline compared to the same period last year. The decrease was primarily driven by the lower contribution from associates. However, the impact was partially offset by reduced finance costs, reflecting the Group's efforts to lower debt and enhance capital efficiency.
Shaker continued to strengthen its balance sheet in H1 2025, with net debt reduced by 16.4% year-on-year to SAR 269.60 million compared to SAR 322.63 million in H1 2024, driven by ongoing efforts to lower borrowings. Total borrowings declined to SAR 341.8 million in H1 2025 from SAR 381.8 million in H1 2024. The net debt to EBITDA* ratio improved to 2.19x in H1 2025 from 2.45x in H1 2024, reflecting stronger earnings and lower leverage.
*LTM EBITDA
Shaker distributed its first ever dividend since 2016, paying SAR 27.75 million in cash during H1 2025, a landmark announcement that highlights the Group's strong financial position and commitment to delivering value to shareholders through disciplined capital management.
The Company remains focused on expanding its core segments, improving operational efficiency, and deepening partnerships with leading global brands, reinforcing its position as a trusted end-to-end solutions provider in Saudi Arabia's HVAC and home appliance sectors.
Strategic Updates
As part of its Elevate 2027 strategy, Shaker signed a strategic partnership with Banque Saudi Fransi's (BSF) EZ Pay program in April 2025, aimed at expanding consumer financing options across the Kingdom. The initiative enables customers to access instant financing of up to SAR 30,000 at 0% interest, with flexible repayment terms between 3 and 24 months, even for those without a BSF account. By integrating EZ Pay across its online platform and showroom network, Shaker is making it easier and more affordable for customers to purchase high-quality appliances, improving both accessibility and overall shopping experience. For Shaker, the partnership is expected to support higher conversion rates and average transaction values while reinforcing its lease-to-own strategy and strengthening its position in the competitive retail landscape.
Retail expansion continued with the opening of new retail stores in Riyadh's Laban district and Jeddah's Hamdaniya neighborhood, bringing the total number of stores to 12 that span over a combined area of more than 6,500 square meters. These locations strengthen Shaker's presence in key urban areas and support its efforts to deliver a consistent and high-quality shopping experience to customers across the Kingdom. The openings bring Shaker closer to its Elevate 2027 goal of operating 15 stores by the end of 2025. This target will also be supported by the introduction of innovative retail concepts in the coming period that enhance accessibility and brand reach, further contributing to the Group's retail transformation journey.
Shaker met with LG Electronics, King Saud University, and Pusan National University to discuss promising means of collaboration in the fields of HVAC research and technology. Bringing together global innovation and local expertise, the discussions focused on advancing sustainability, building local capability, and supporting Saudi Vision 2030. Discussions are ongoing.
In May, Shaker was recognized by LG Electronics Middle East and Africa as the 'Best Service Provider in the Middle East,' reflecting the positive results of the strategic restructuring initiated in 2023. The Group now operates service centers in 10 cities across Saudi Arabia, with round-the-clock scheduling available seven days a week, supporting a higher standard of after-sales experience.
Following the close of the second quarter, Shaker signed a strategic partnership with Revest on July 24, 2025, focused on deploying AI-powered solutions across its retail operations. The initiative is designed to unify and optimize omnichannel operations by enhancing digital channel integration, inventory management, and customer experience. This aligns with Revest's mission to empower retailers through seamless technology and with Shaker's long-term digital roadmap under Elevate 2027, supporting scalable, innovative, reliable transformation across the Group's retail footprint.
Outlook
Shaker Group remains focused on delivering its Elevate 2027 strategy, with a strong pipeline of initiatives aimed at driving long-term growth and operational excellence. Looking ahead, the Group will continue expanding its participation in large-scale B2B and megaproject tenders across sectors such as residential, hospitality, education, and healthcare, targeting a doubling of net profit by 2027.
Retail and e-commerce growth also remain key priorities, with plans to expand the Shaker store footprint to 15 locations by 2025 and increase the share of higher-margin DTC sales. This will be supported by the introduction of more global brands and adjacent appliance categories, along with the rollout of the new leasing program to better serve evolving consumer needs.
Shaker is also advancing its 3PL logistics initiative, using its scale and infrastructure to support other companies in the white goods sector and unlock new revenue opportunities. These strategic moves are backed by ongoing efforts to optimize efficiency, elevate service quality, and deliver stronger value across the Group's B2B and B2C channels.
-Ends-
About Shaker
Shaker was founded in 1950 and was amongst the first in Saudi Arabia to introduce Air Conditioning & Home Appliances for Saudi consumers. Shaker is the importer and distributor of several leading international brands including Maytag, Ariston, Midea, Bompani, Stanley Black & Decker, Samsung, and LG in Saudi Arabia, and the sole distributor of LG Air Conditioners in Saudi Arabia. ESCO, as a business unit of Shaker, provides Energy Solutions. Shaker has been a publicly listed company on the Saudi Exchange (Saudi Exchange) since 2010. Throughout the years, Shaker has positioned its name among the top Saudi companies, providing a range of integrated solutions in terms of Air Conditioners and Home Appliances in the Saudi market and the region. For more information, visit: http://www.shaker.com.sa/
For investor and media inquiries
Sam Ryan Siahpolo, IP Excellera
sam.siahpolo@ipexcellera.com
Joann Joseph, IP Excellera
joann.joseph@ipexcellera.com
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