Sélim Chidiac, CEO of Lazurde Company for Jewelry
Lazurde Company for Jewelry’s e-commerce segment developed rapidly and the company expects the segment to represent more than 20% of its retail revenue, Chief Executive Officer (CEO) Sélim Chidiac told Argaam in an exclusive.
Lazurde will continue to improve technology and the link between stores and website, in addition to developing e-commerce products.
The second-quarter results were driven by the transformation strategy that began two years ago after the acquisition of TOUS, Miss L and Lazurde Instyle, which are sold at low prices and high profit margins. This contributed to increasing revenue significantly in all of company's channels in Saudi Arabia and Egypt, Chidiac said.
As of the first quarter of 2021, the company's position improved compared to pre-COVID-19 levels, with its cash flow hitting a three-year high in Q2 2021.
The balance sheet is good, as shareholders' equity leapt 30%, while total liabilities dropped by 32%, Chidiac said.
Banking loans of gold fell from SAR 1.3 billion in June 2020 to SAR 930 million in June 2021, while cash banking loans declined to SAR 40 million.
Talking about the capital increase, the CEO said it will help boost revenue and profitability, through opening new retail stores in malls, as well as developing e-commerce and decreasing bank loans of gold and cash, which will ease costs.
Commenting on Q2 2021 revenue of the wholesale and retail segments, Chidiac said the revenue of wholesale by weight reached SAR 59 million, an increase of 190% compared with a year earlier. Meanwhile, the revenue of wholesale by pieces reached SAR 10 million.
The company's branches reached 52 in the Kingdom and 26 in Egypt during the second quarter of 2021. "We opened seven branches in H1 2021 and will open five others in H2 2021.
Meanwhile, we will close two or three branches to improve and review the performance and profitability of each branch in 2021," the CEO said.
He added that the company plans to open 11 branches in Saudi Arabia and Egypt under the brands Lazurde and Miss L in 2022.
Chidiac forecasts the company to post better financials in Q3 2021 and in the near term, after the robust performance in H1 2021 and capital increase.
The Tadawul-listed firm swung to a net profit after Zakat and tax of SAR 18.2 million in H1 2021, against a net loss of SAR 67.8 million in the year-ago period. In Q2 2021, it posted a net profit of SAR 8 million, Argaam reported.
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