Lazurde Company for Jewelry announces its Interim Financial results for the Period Ending on 2025-06-30 ( Six Months )

1. Group total revenues, including gold metal value, were SAR 659.6 million in the second quarter of 2025, an increase of 29.0% compared to SAR 511.5 million in the same quarter of last year.

2. Group operating revenues, which better represent the revenues of the Group after excluding gold metal value, amounted to SAR 117.7 million in the second quarter of 2025, an increase of 10.2% compared to SAR 106.8 million in the same quarter of last year.

Group revenues from retail channel increased by 10.6% compared to the same quarter of last year due to growth in the like-for-like stores of the existing stores and the extension of the store’s network.

In KSA, retail operating revenues were 4.5% higher than the same quarter of last year due to growth in like-for-like sales of the existing stores and the extension of the store’s network.

In Egypt, retail operating revenues increased by 28.8% in SAR, supported by growth in sales of the existing stores and the extension of the store’s network.

Also in Egypt, the group continues its success as wholesale operating revenues increased by 26.3% in SAR when compared to the same quarter of last year, due to strong sales of L’azurde gold jewelry in traditional gold souks.

2. Net loss amounted to SAR 25.8 million compared to net profit of SAR 4.0 million in the same quarter of last year due to the factors mentioned above and a one-off loss of SAR 8.5 million related to Company’s salesmen misappropriation. The company has enough insurance coverage for such incidents and has submitted the necessary claims and supporting documents to the insurance company in order to demand compensation for this loss. The proceeds of the insurance claims from company were not recorded during this period as it will be recorded in the income statement in the period when received.

2. Operating revenues of SAR 117.7 million for the second quarter of 2025 were lower than first quarter of 2025 by 26.7% of SAR 160.5 million due to seasonality.

1. Group total revenues, including gold metal value, were SAR 1,380.9 million in the first six months of 2025, an increase of 32.4% compared to SAR 1,043.2 million in the same period of last year.

2. Group operating revenues, which better represent the revenues of the Group after excluding gold metal value, amounted to SAR 278.2 million in the first six months of 2025, an increase of 11.4% compared to SAR 249.8 million in the same period of last year.

Group revenues from retail channel increased by 17.3% compared to the same period of last year due to growth in the like-for-like stores of the existing stores and the extension of the store’s network.

In KSA, retail operating revenues were 23.9% higher than last year due to growth in like-for-like sales of the existing stores and the extension of the store’s network by opening 7 new stores in top locations in the last 12 months.

In Egypt, retail operating revenues grew by 5% in SAR, supported by growth in sales of the existing stores and opening of 6 new stores in top locations in the last 12 months.

Also in Egypt, the group continues its success as wholesale operating revenues increased by 24.8% in SAR when compared to the same period of last year, due to strong sales of L’azurde gold jewelry in traditional gold souks.

1. Despite the increase in Group gross profit from operations of SAR 169.5 million by 8.0% when compared to SAR 157.0 million in the same period of last year , The Group operating profit of SAR 24.1 million decreased by 48.3%, when compared to SAR 46.6 million in the same period of last year, primarily attributable to a one-off provision for an expected credit loss of SAR 13.6 million.

2. Net loss amounted to SAR 12.5 million compared to net profit of SAR 32.0 million in the same period of last year, due to one-off net exchange gain in the six months of 2024 of around SAR 21.2 million, and a one-off loss of SAR 8.5 million related to Company’s salesmen misappropriation.

3. Excluding the above one-off losses of expected credit loss provision and Company’s salesmen misappropriation, the Group net profit in the first 6 months would have been SAR 9.6 million.

4. Basic Loss per Share was SAR 0.22 compared to Earnings per Share of SAR 0.56 in the same period last year.

5. Total Shareholders’ Equity on 30 June 2025 was SAR 269.0 million compared to SAR 310.4 million on 30 June 2024, a decrease of 13.3%, due to negative movement in the Currency Translation Reserve due to unrealized foreign exchange differences on investment in Egypt. It is worth mentioning that the Currency Translation Reserve is a non-cash item that arises on consolidation only and fluctuates with the fluctuation of the foreign exchange rates and it has no real impact on the company's financial position. Total Shareholders’ Equity, excluding the Currency Translation Reserve, amounted to SAR 631.5 million compared to SAR 668.5 million on 30 June 2024.

For more information, we would like to draw the attention of the shareholders that the Consolidated Financial Statements for the period ended 30 June 2025 will be available on the Company’s website (http://www.lazurde.com) under investors’ relations section.