Robust demand likely in Q2 2025: Shaker CEO

Al Hassan Ghazi Ibrahim Shaker Co. (Shaker) expects robust demand levels in Q2 2025, backed by seasonal trends especially in the air conditioning (AC) segment on the arrival of the summer season in Saudi Arabia, CEO Mohammed Abunayyan told Argaam in an interview.

 

The recent brand portfolio additions and promotional activities in the home appliances segment are expected to help maintain growth momentum, Abunayyan pointed out.

 

However, the Saudi-listed company remains cautious given the ongoing market developments, despite anticipating stronger demand in Q2 2025 thanks to promotional campaigns coinciding with Eid Al-Fitr, he added.

 

The new BSF Easy Pay initiative is likely to be rolled out during this quarter, which should in turn ease customer accessibility through interest-free financing options, either in-store or online. This initiative aligns with the company’s installment-based purchasing strategy and is bound to lift sales by catering to a broader customer base across the Kingdom.

 

Commenting on Shaker’s Q1 2025 financials, Abunayyan indicated that the first-quarter earnings decline was primarily due to a slump in income share from associates from SAR 12 million in Q1 2024 to SAR 8.8 million in Q1 2025, despite the gross profit increase and improved cost efficiency. Foreign exchange losses of SAR 600,000 were also recognized during the quarter, versus realizing gains in the same period last year.

 

The year-on-year (YoY) drop in the home appliance segment’s Q1 2025 revenue was due to changes in the company’s brand portfolio, which heavily weighed on sales volumes.

 

Conversely, when compared to the previous quarter, Shaker achieved robust growth of 160% in this segment’s first-quarter results, propelled by the introduction of new brands and seasonal sales hikes during Ramadan alongside targeted promotional campaigns.

 

Shaker’s strategic shift in brand partnerships is gaining traction, having the potential to drive future growth in the home appliances segment, the CEO highlighted.

 

Meanwhile, the return on lower financing costs for Q1 2025 was outweighed by pressures such as higher depreciation from an expanded asset base and increased operating expenses on elevated recruitment to serve broader product and service offerings.

 

According to Abunayyan, these investments are thought-through and align with Shaker’s long-term strategy. He also confirmed that the company is on track to meet the goals of its Elevate 2027 roadmap.

 

The AC segment remains a core focus, with the company reporting balanced growth in this segment, supported by its market leadership. Its performance reflects resilience in a competitive environment, he noted.

 

Shaker recently extended a memorandum of understanding (MoU) with LG Group and the Ministry of Investment to study the local manufacturing of AC compressors.

 

This supports Shaker’s localization strategy and value chain integration. It is anticipated to strengthen the company’s market position and boost sustainable growth.

 

Abunayyan said the company is currently focused on enhancing capabilities, infrastructure, and product mix to enable scalable, long-term growth.

 

Shaker’s Q1 2025 net income fell 16% to SAR 27.2 million, from SAR 32.2 million in Q1 2024, according to Argaam’s data.