Saudi Arabian importer, manufacturer and distributor of air conditioners and home appliances, Shaker Group, has recorded revenue growth of $130m for H1 2020 - an 8.4% spike on the previous year.
The company has achieved profitable results for the first time since Q3 2016, driven by the success of its Breakthrough Program turnaround strategy, and supported by an agile response to the Covid-19 pandemic.
Operational efficiencies and structural changes have been introduced across the business, in line with the Breakthrough Program, which was launched in Q1 2019. The Company’s portfolio of brands has continued to grow, with Bompani added to the Home Appliances segment in H1 2020.
Eng. Azzam Saud Almudaiheem, Chief Executive Officer at Shaker Group, said: “We are very pleased to be reporting a return to profitability, on the back of strong performance during the first half, and in spite of challenging market conditions. Healthy bottom-line results were driven by strong growth in revenues, coupled with reduction and control of expenses, along with our agility in responding to the headwinds created by the Covid-19 pandemic.
"The group was successful in mitigating the impact of pressure on sales early in the second quarter, with improving sales in May and June partially supported by customers ramping-up purchasing ahead of increased VAT.
"Our product mix remains critical to future success, with higher margin Home Appliances having increased their share of sales by more than 10% year-on-year. Growth in sales to major projects was steady, and still represents a relatively untapped opportunity.
“With the inventory liquidation process completed in 2019, and our product portfolio better aligned with market requirements, we have grown sales and improved margins. Structural changes to our B2C sales infrastructure are now complete, with enhancements to B2B sales still underway, which means we can still expect to achieve higher levels of efficiency in 2020 and 2021.
"While the impact of Covid-19 put pressure on sales at traditional retail outlets, and caused some supply chain disruption, our response has been effective. We have utilized the Saudi government’s private sector support package and were agile in pivoting the sales and distribution model to recover quickly.
"The strengthening of our relationships with dealers, as part of the Breakthrough Program, has been vital. Their e-commerce platforms were essential for maintaining and growing sales volumes. Going forward, the growth of our own e-commerce platform will be important for diversifying sales channels.”