According to the company’s financial data on Tadawul on Wednesday, the company’s losses amounted to about 17.5 million riyals, compared to profits of 17.7 million riyals at the end of 2018.
The company said that the year 2019 was affected by several exceptional factors, including acceptance of returns for sales of heavyweight gold jewelry in the wholesale sector in the Kingdom of Saudi Arabia due to the rise in Prices Gold and low demand for heavy weights, with the effect of 18.5 million Saudi riyals.
She explained that the increase in gold prices led to an increase in the financing costs associated with the credit facilities for obtaining gold by 2.6 million Saudi riyals, in addition to an additional reserve of 17.8 million Saudi riyals in the retail sector.
The company indicated that the total revenue of the group, including the value of gold metal, reached two billion riyals in 2019, an increase of 3.3% compared to 1.9 billion riyals in the previous year.
The group achieved 18% growth compared to the previous year in operating revenues, which are the real revenues of the group after excluding the value of gold metal, as the operating revenues of the group amounted to 481.2 million riyals, compared to 406.4 million Saudi riyals in the previous year.
Operating revenues of retail channels increased from the previous year in our primary markets in Saudi Arabia and Egypt. In the Kingdom of Saudi Arabia, retail revenue increased by 59%, mainly due to the consolidation of revenue for the international brand TOUS, whose franchise was acquired in the fourth quarter of 2018.
The Board of Directors of L’azurde Company for Jewelry, in its meeting held on March 17, 2019, decided to recommend to the shareholders’ general assembly not to distribute cash dividends for the fiscal year ending on December 31, 2019.
She added that the reason for not distributing dividends is to maintain the solvency of the company and its investment, which will be reflected in the company’s revenue growth and profits.
The company’s financial results showed that retail revenue in Egypt It witnessed a growth of 47% compared to the previous year due to the increase in sales volume in the existing stores and the opening of four new outlets.
The wholesale channel performed very well in Egypt, with a growth rate of 19% compared to the previous year thanks to the success of the advertising campaigns and the customers’ attraction to the new product group.
As for the Kingdom of Saudi Arabia, the operating revenues for wholesale sales came low compared to the previous year by 19%, as a result of the increase in gold prices during the year and the subsequent response of the group to that as they deliberately changed designs and reduced the average weight of their new products from gold jewelry, to ensure that New products cater to the changing tastes and powers of their customers.
The company also accepted the return of heavy duty goldsmiths from its clients, for one time, to ensure that customers and retailers obtain the products appropriate to the market conditions.