Shaker Group announces reduced Q3 losses

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Shaker Group announces reduced Q3 losses

Published: Thu 8 Nov 2018, 4:11 PM

Last updated: Sun 11 Nov 2018, 4:56 PM

Shaker Group has announced that its losses for the third quarter, at both net and operating level, decreased compared to the third quarter of 2017, as a result of improvements to the group's gross margin and the delivery of reduced operating costs
General and administrative expenses were reduced by SR1.6 million, resulting from lower employee costs. Costs were further reduced by an SR0.7 million decrease in financing expenses as compared with 2017.
On a year-on-year basis, the company was successful in reducing general and administrative expenses by 11.4 per cent for the nine months ended September 30, 2018, while selling and distribution expenses decreased by 12.8 per cent and other expenses decreased by SR14.2 million. The company's management considers these reduced expenses to be essential for putting the group on a more efficient footing to deliver improved performance.
Azzam Saud Almudaiheem, CEO at Shaker Group, said: "While we continue to face pressure on sales revenues as a result of market challenges including increased competition, a lackluster construction sector and unfavorable seasonality in the third quarter, we are pleased that our efforts to reduce operating expenses and improve efficiencies are delivering results. We are bullish on the positive effect we expect to see from our cost optimisation measures, and while we have experienced difficult years in a challenging market, we are addressing these issues head-on to achieve improved performance. We remain confident that the market for AC and home appliances shows long-term promise."
Net losses for the nine-month period increased compared to the same period in 2017, mainly due to a decrease in sales of 27.2 per cent, resulting from sustained market headwinds that include increased competition, muted customer demand, and reduced spending on real estate and construction projects in Saudi Arabia. The group is actively pursuing new and strategic opportunities that it believes will stimulate sales.
- business@khaleejtimes.com

By Staff Report

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