Al Hassan Shaker’s reports a net profit of SAR 446.8m for the first nine months of 2014

Al Hassan Ghazi Ibrahim Shaker, a certified  agent of LG in Saudi Arabia, reported a net profit of SAR 446.8m for the nine months ended September 30,2014, compared to a profit of SAR 156.1m of the same period last year.

A net profit of SAR 43.8m was reported for Q3-2014.

The Company attributed the increase of the first nine months of 2014’s net profit compared to the same period last year to the recorded Shaker’s share of gain on fair valuation of retained equity interest reported in Q2 of 2014 for net gain of SAR 304.5m net of assessed zakat value. Accordingly, net income for the current period excluding the gain on fair valuation of retained equity interest would be around SAR 135m compared to SAR 156m reported net income for the same period in 2013 and that reflects a subsiding decline of 13.6% compared to reported decline of 21% at end of second quarter 2014 where the initial major decline contributed, as reported earlier, in Q1-2014.
The Company attributed the decline of Q3-2014’s net profit compared to the same period last year to the decrease of reported sales in Q1-2014 which impacted notably company profitability despite the reported improvement in the gross profit margin in this period compared to same period of last year.

The Company attributed the increase of current quarter’s profitability at all levels; net, gross and operating profit, to increased sales as well as improved profitability margins.

The decline of Q3-2014’s net profit compared to the previous period (Q2-2014) was attributed to the recorded share of gain on fair valuation of retained equity interest reported in Q2- 2014 in addition to the relatively declined sales due to the lesser demand received during holy month of Ramadan and its followed EID holiday that took place during the current quarter. The declined sales due to same reason mentioned above was also the main reason behind the declined gross profit and the operating income in current quarter compared to previous quarter although gross profit margin has improved and overall expenses has decreased.