Al Hassan Shaker reports 2014 net profit of SAR 455.4 mln

Al Hassan Ghazi Ibrahim Shaker, a certified agent of LG in Saudi Arabia, reported a net profit of SAR 455.4 million for the year of 2014, compared to a profit of SAR 125.1 million for the same period last year.

A net profit of SAR 8.5 million was reported for Q4-2014 compared to SAR 43.8 million for Q3.

The Company attributed the increase of 2014’s net profit compared to the same period last year to the improved profit margins despite the decline of sales by SAR 80 million.

The increase of net profit was due to the gain of SAR 304.5 million realized from revaluation of Shaker LG LLC’s equity interest which if excluded the periods profit would have been SAR 151 million compared to SAR 125.1 million for last year (21.6% increase).

 
The Company attributed the increase of Q4-2014’s net profit compared to the same period last year to the increase of sales and profit margins specially for air conditions.

The current period’s profit was higher than the net profit of the same period last year even if the provisions of SAR 50 million formed during the previous year were excluded.

The increase of net profit was also attributed to the increase of Shaker LG co.’s profits whose results are included in the company’s consolidated financial statements.

The operating loss was attributed to incurring SAR 11.5 million for the rehabilitation of the old air conditions’ inventory to meet the new specifications.

There was an increase of 35%in operating expenses driven by the increase of marketing expenses and freight cost within the Kingdom which is directly related to the increase of sales. G&A expenses increased by 48% as a result of the administrative expansions to support the operating needs and the acquisition of Asdaa Al Khaleej Company.

The decline of Q4-2014’s net profit compared to the previous period (Q3-2014) was attributed to the proportional decline of sales revenue and the increase of the cost of sales in Q4 which included SAR 11.5 million for the rehabilitation of the old air conditions’ inventory to meet the new specifications.

There was an increase of 20%in operating expenses driven by the increase of marketing expenses and rent expense. G&A expenses increased by 6% to support the acquisition of Asdaa Al Khaleej Company.