Lazurde Company for Jewelry announces its Interim Financial results for the Period Ending on 2025-09-30 ( Nine Months ) | premargin

LAZURDE

Lazurde Company for Jewelry announces its Interim Financial results for the Period Ending on 2025-09-30 ( Nine Months )

LAZURDETadawulNovember 6, 2025View on exchange

Element List	Current Quarter	Similar quarter for previous year	%Change	Previous Quarter	% Change
Sales/Revenue	893.2	606.4	47.295	659.6	35.415
Gross Profit (Loss)	59.8	50.1	19.361	51.7	15.667
Operational Profit (Loss)	9.8	16.9	-42.011	-1.7	-
Net profit (Loss)	-4.3	-7.2	-40.277	-25.8	-83.333
Total Comprehensive Income	-	-8.5	-100	-24.3	-100
All figures are in (Millions) Saudi Arabia, Riyals

Element List	Current Period	Similar period for previous year	%Change
Sales/Revenue	2,274	1,649.7	37.843
Gross Profit (Loss)	175.6	183.5	-4.305
Operational Profit (Loss)	26.3	63.5	-58.582
Net profit (Loss)	-16.8	24.8	-
Total Comprehensive Income	-10.2	-41.3	-75.302
Total Shareholders Equity (after Deducting Minority Equity)	269.1	301.2	-10.657
Profit (Loss) per Share	-0.29	0.43
All figures are in (Millions) Saudi Arabia, Riyals

Element List	Amount	Percentage of the capital (%)
Profit (Losses) Resulting From The Change In Investment Propertie’s Fair Value	-	-
Accumulated Losses	-	-
All figures are in (Millions) Saudi Arabia, Riyals

Element List	Explanation
The reason of the increase (decrease) in the sales/ revenues during the current quarter compared to the same quarter of the last year is	The following factors mainly explain the changes in group revenues in the third quarter of 2025: 1. Group total revenues, including gold metal value, were SAR 893.2 million in the third quarter of 2025, an increase of 47.3% compared to SAR 606.4 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 144.1 million in the third quarter of 2025, an increase of 31.4% compared to SAR 109.7 million in the same quarter of last year. Group wholesale revenues rose by 42% in the third quarter of 2025 when compared to same quarter of last year, supported by robust demand for L’azurde gold jewelry across traditional gold souks. Group retail revenues increased by 21.3% in the third quarter of 2025 when compared to the same quarter last year, driven by strong growth in like-for-like sales from existing stores and the continued expansion of our store network. Retail revenues in KSA grew by 22.0%, while in Egypt they increased by 20.3% (in SAR terms).
The reason of the increase (decrease) in the net profit during the current quarter compared to the same quarter of the last year is	1. Despite the high growth in revenues in all channels and regions, and achieving a Group gross profit from operations of SAR 88.7 million, which was higher by 31.0% compared to the same quarter of last year, the Group has recorded an additional expected credit loss provision of SAR 12.6 million due to the increase in the value of old legal customers’ balances from the increase in gold price related to these cases. 2. The Group achieved operating profit of SAR 9.8 million, compared to operating profit of SAR 16.9 million in the same quarter of last year, impacted by the additional provision mentioned above. 3. Net loss amounted to SAR 4.3 million compared to net loss of SAR 7.2 million in the same quarter of last year due to the factors mentioned above.
The reason of the increase (decrease) in the sales/ revenues during the current quarter compared to the previous one is	4. Group total revenues, including gold metal value, were SAR 893.2 million in the third quarter of 2025, an increase of 35.4% compared to SAR 659.6 million in the second quarter of 2025. 5. Operating revenues were SAR 144.1 million in the third quarter of 2025, an increase of 22.4% compared to SAR 117.7 million in the second quarter of 2025.
The reason of the increase (decrease) in the net profit (loss) during the current quarter compared to the previous one is	Net loss of SAR 4.3 million for the third quarter of 2025, compared to net loss of SAR 25.8 million for the second quarter of 2025 which was negatively affected by non-recurring losses and provisions.
The reason of the increase (decrease) in the sales/ revenues during the current period compared to the same period of the last year is	The following factors mainly explain the changes in group revenues in the first nine months of 2025: 1. Group total revenues, including gold metal value, were SAR 2,274.0 million in the first nine months of 2025, an increase of 37.8% compared to SAR 1,649.7 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 422.3 million in the first nine months of 2025, an increase of 17.5% compared to SAR 359.5 million in the same period of last year. Group wholesale revenues in the first nine months of 2025 increased by 17.3%, supported by robust demand for L’azurde gold jewelry across traditional gold souks. Group retail revenues in the first nine months of 2025 increased by 17.6% compared to the same period of last year, driven by strong growth in like-for-like sales from existing stores and the continued expansion of our store network. Retail revenues in KSA grew by 21.8%, while in Egypt they increased by 10.2% (in SAR terms).
The reason of the increase (decrease) in the net profit during the current period compared to the same period of the last year is	The following factors mainly explain how the net loss of the first nine months of 2025 was realized: 1. Despite the increase in Group gross profit from operations of SAR 258.1 million by 15% when compared to SAR 224.6 million in the same period of last year, the Group operating profit of SAR 27.5 million decreased by 56.7%, when compared to SAR 63.5 million in the same period of last year, primarily attributable to increase in expected credit loss provision of SAR 12.6 million in the third quarter of 2025 due to increase in gold price in the current quarter as stated above, and a one-off provision for an expected credit loss of SAR 16.7 million due to disputes with some wholesales customers over some balances. The management continues to follow-up on the necessary legal and recovery measures to collect the underlying receivables. 2. Net loss in the first nine months of 2025 amounted to SAR 16.8 million compared to net profit of SAR 24.8 million in the same period of last year, due to one-off net exchange gain in the nine months of 2024 of SAR 19.4 million, and a one-off loss of SAR 9.7 million related to Company’s salesmen misappropriation, the impact of which was recognized in the current period. 3. Excluding the above one-off losses of expected credit loss provision and Company’s salesmen misappropriation, the Group net profit in the first nine months of 2025 would have been SAR 9.6 million. 4. It is worth noting that the insurance proceeds related to the claims raised by the company for salesmen misappropriation and other losses have not yet been received and remain under review by the insurance company. 5. Basic Loss per Share was SAR 0.29 compared to Earnings per Share of SAR 0.43 in the same period last year. 6. Total Shareholders’ Equity on 30 September 2025 was SAR 269.1 million compared to SAR 301.2 million on 30 September 2024, a decrease of 10.7%. Total Shareholders’ Equity on 30 September 2025, excluding the negative Currency Translation Reserve, amounted to SAR 627.3 million compared to SAR 660.2 million on 30 September 2024. 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.
Statement of the type of external auditor's report	Unmodified conclusion
Comment mentioned in the external auditor’s report, mentioned in any of the following paragraphs (other matter, conservation, notice, disclaimer of opinion, or adverse opinion)	None
Reclassification of Comparison Items	Certain comparative figures have been reclassified to conform to current year presentation.
Additional Information	Overall, in the nine months of this year, the Group achieved a notable growth of 17.5% in operating revenues and maintained its profit margins across all segments. However, due to the recognition of one-off provision for expected credit losses, which the Group is actively working to recover, and the implementation of strict internal controls, reinforced by the directives of the Board of Directors and the current executive management, that revealed shortages in the custody of certain sales representatives, the Group has recorded the necessary provisions despite having comprehensive insurance coverage for such incidents and taking the necessary legal actions. Nevertheless, the Group remains well-positioned to continue growing its revenues and improving profit margins, while avoiding non-recurring provisions and losses. This is expected to have a positive and significant impact on profitability in the upcoming periods. For more information, we would like to draw the attention of the shareholders that the Consolidated Financial Statements for the period ended 30 September 2025 will be available on the Company’s website (http://www.lazurde.com) under investors’ relations section.