Shaker Group posts robust H1 results; revenue hits record $205m

05/08/2025 03:26 AST

Al Hassan Ghazi Ibrahim Shaker Company (Shaker Group), a leading manufacturer, importer, and distributor of air conditioners and home appliances in Saudi Arabia, has delivered solid results for the first half with a record revenue and gross profit, its strongest since 2017, supported by consistent growth and execution of its Elevate 2027 strategy.

Announcing its results for the six-month period ended June 30, 2025, Shaker Group said its revenue soared to SAR769 million ($205 million), up 1.4% YoY, supported by steady H1 2025 performance of 2.3% YoY growth in the HVAC segment, partially offset by a 1.7% YoY decline in the home appliances segment.

Its gross profit too hit a eight-year high surging to SAR193.25 million, up 6.8% YoY, driven by cost efficiencies and an improved product mix.

Shaker Group's operating income for the six-month period stood at SAR44.76 million, up 4.4% YoY, reflecting effective cost management, partially offset by planned investments in talent.

However, its net profit fell 3.3% to SAR47.1 million, mainly due to a lower share of profit from associates, partially offset by reduced finance costs.

On its Q2 results, Shaker Group said its revenue for the three-month period ended June 30, 2025, stood at SAR 368.77 million, up 6.9% over last year. Its gross profit surged by 11.3% to hit SAR92.62 million.

Its operating income recorded a 70.7% growth hitting SAR19.69 million in Q2, while its net profit surged by 21% to hit SAR19.90 million.

On the solid performance, CEO Mohammed Ibrahim Abunayyan said: "The first half of 2025 marked Shaker's strongest performance since 2017, driven by disciplined execution and a sharp focus on long-term value creation. We expanded our retail footprint by adding a new store in Q2, bringing the total to 12 and moving steadily toward our Elevate 2027 goal of reaching 15 stores by the end of the year."

"We also introduced customer-centric innovations, including EZ Pay in collaboration with BSF, giving shoppers greater flexibility. We took meaningful steps to optimize our capital structure, reducing debt and positioning the Company for long-term financial flexibility," stated the top official.

"For the first time since 2016, we distributed dividends to our shareholders, demonstrating our financial strength and commitment to sustained value creation. Elevate 2027 is reshaping how we operate, how we serve customers, and how we grow. The momentum is strong, and we are determined to carry it forward," he added.

According to him, Shaker achieved its strongest first-half results in terms of revenue and gross profit since 2017, marking a key milestone in its growth journey.

This revenue growth was supported by consistent performance across key segments. HVAC revenue grew by 2.3% YoY to SAR533.98 million in H1 2025, mainly driven by Q2 2025 growth of 3.0% YoY, supported by seasonal demand and increasing mega project activity.

However, there was a slight decline in the revenue of home appliances section which fell 1.7% YoY to SAR231.04 million. This was due to an 11.8% YoY drop in Q1 2025 which was partially offset by Q2 2025 with a strong recovery of 17.7% YoY, due to better product availability and new product offerings from Black & Decker, Samsung, and Midea, said Abunayyan.

Other revenue grew by 206.5% YoY to SAR4.17 million in H1 2025, driven by the initial ramp-up from new ventures. This is aligned with the Group's Elevate 2027 strategy, reinforcing core service pillars and unlocking adjacent revenue streams, he added.

The Saudi group said B2B had contributed about 41% of total revenue and is supported by rising demand from mega projects across strategic sectors, in line with the Group's focus on increasing tender participation.

B2C contributed about 53% of total revenue and remained a key driver of overall performance, fueled by strong consumer response to newly introduced global brands and the continued expansion of Shaker's retail presence, it stated.

Shaker continued to strengthen its balance sheet in H1 2025, with net debt reduced by 16.4% year-on-year to SAR269.60 million compared to SAR322.63 million in H1 2024, driven by ongoing efforts to lower borrowings.

Total borrowings fell to SAR341.8 million in H1 2025 from SAR381.8 million in H1 2024, it added.

Impressed with the results, Shaker Group has distributed its first ever dividend since 2016, paying SAR27.75 million in cash for the first half, a landmark announcement that highlights the Group's strong financial position and commitment to delivering value to shareholders through disciplined capital management.

The company remains focused on expanding its core segments, improving operational efficiency, and deepening partnerships with leading global brands, reinforcing its position as a trusted end-to-end solutions provider in Saudi Arabia's HVAC and home appliance sectors.

Trade Arabia