Lazurde recovers from weakening EGP, product demand still strong: CEO

Selim Chidiac, CEO of Lazurde Company for Jewelry

Selim Chidiac, CEO of Lazurde Company for Jewelry, said that demand for the company’s products and brands continues to be strong in all the channels and geographies, where it operates.

Lazurde plans to launch new products that meet the changing demand and taste of its consumers and their budgets.

Chidiac told Argaam in a phone call that the net profit achieved in Q2 2022 reflected Lazurde’s solid and consistent performance since Q1 2021, despite the new challenges and opportunities addressed by the company every quarter.

The company continued to grow its wholesale channel operating revenue in Saudi Arabia by 17.8% and is bracing for a strong expansion in its retail network. The company also has a large and profitable business in Egypt, where it was challenged by the weakening of the Egyptian pound (EGP), which affected its revenues when translated to Saudi riyals.

In June, revenues in Egypt recovered to the pre-devaluation level, the CEO affirmed, noting that Lazurde successfully took appropriate and timely measures, including increasing sales prices in Egyptian currency to cope with the inflation and currency rate. It also launched new lightweight and affordable jewelry at attractive price points to meet the budgets of different consumers.

Chidiac added that the 11% decrease in revenues includes the value of the gold as a metal, from which Lazurde does not make any gain or loss as it is fully hedged. The group’s operating revenues reached SAR 117.1 million, which better represents the group’s revenues after excluding the gold metal value.

Elsewhere, the CEO expected solid performance to continue in Saudi Arabia and the GCC during the third quarter.

“We have a strong plan to expand retail channel in Saudi Arabia by opening our own shops in the best locations across Saudi Arabia,” he noted.

“In Egypt, as the devaluation is almost behind us and with the measures the company took already, we expect a strong third quarter in Egypt as well,” Chidiac concluded.