Shaker’s capital restructuring to enhance financial solvency, cut borrowing: CEO

Mohammed Abunayyan, CEO of Shaker

Al Hassan Ghazi Ibrahim Shaker Co.’s capital restructuring plan, under which the company will slash its capital and then increase it through a rights issue, aims to enhance financial solvency and reduce borrowing rates, Chief Executive Officer (CEO) Mohammed Abunayyan told Argaam in a telephone interview.

The capitalization will help Shaker offset accumulated losses and will bolster its capital to implement the 2021-23 strategy, which focuses on raising the company’s market share in the sectors where it operates and expand in new industries to meet consumer needs.

“The company demonstrated solid performance in the third quarter of the year, backed by sales in all segments, especially home appliances. Moreover, its distribution channels saw improvement, thanks to Shaker’s recently announced 2021-23 strategy,” Abunayyan said.

The company continued to boost its market share in the home appliance segment and support growth in the air conditioning industry, the CEO added, noting that sales saw a significant rise in Q3 2021, driven by Saudi National Day and the back-to-school season.

Saudi Arabia is Shaker’s key market, therefore, the company divided its sales by business segment. Shaker’s home appliance and air-conditioning (AC) sales climbed 25% and 6% year-on-year (YoY), respectively, in the nine-month period.

Shaker will continue to focus on boosting its growth in the local market by growing its product portfolio and increasing its market share through its various products, Abunayyan affirmed.

Replying to a question about Shaker’s market share in the AC and home appliance segments, Abunayyan said the market share varies based on the product categories. In line with the 2021-2023 strategy, the company targets to rank among the top three suppliers in these product categories, as Shaker is deemed a pioneer in the Saudi AC market.

Moreover, the flagship MultiV products account for almost 35% of the Saudi market share for heating, ventilation and air conditioning (HVAC) solutions, whereas the split inverter segment enjoys over 50% share.

The company is likely to maintain its solid results in the fourth quarter of the year, and the following period. It will continue implementing its new strategy, which was rolled out in early 2021. Shaker seeks to be the Kingdom’s top supplier in the consumer electronics and home appliances industry through diversifying its trademark portfolio and enhancing its leadership in the local AC market, Abunayyan concluded.

Shaker posted a net profit after Zakat and tax of SAR 27.1 million for the first nine months of 2021 from SAR 8.3 million a year earlier. The third-quarter net profit reached SAR 12 million, Argaam reported.