| Element List | Current Year | Previous Year | %Change | ||
|---|---|---|---|---|---|
| Sales/Revenue | 2,904.6 | 2,108.5 | 37.76 | ||
| Gross Profit (Loss) | 211.9 | 223 | -4.98 | ||
| Operational Profit (Loss) | 17 | 64.1 | -73.48 | ||
| Net Profit (Loss) Attributable to Shareholders of the Issuer | -42.2 | 11.7 | - | ||
| Total Comprehensive Income Attributable to Shareholders of the Issuer | -33.7 | -63.2 | -46.68 | ||
| Total Shareholders Equity (after Deducting Minority Equity) | 245.7 | 279.3 | -12.03 | ||
| Profit (Loss) per Share | -0.73 | 0.2 | |||
| 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 year compared to the last year | The increase in Group’s total revenues by 37.8% to SAR 2,904.6 million compared to SAR 2,904.6 million in the previous year is primarily driven by performance improvement and the surge in global gold prices. Evaluating the core business performance, the following factors mainly explain the revenue growth: 1. Operating revenues: Group operating revenues (which better represent the revenues of the Group after excluding the gold metal value and its price increase) significantly increased by 16.9% to reach SAR 540.4 million, compared to SAR 462.4 million in the previous year, the highest revenues in the company’s history. 2. Wholesale growth: Group wholesale revenues increased by 15.4%. This was supported by robust demand and the successful implementation of price increases, with Labor Service Charges (LSC) increased in KSA and in Egypt supported by the strength of Lazurde brand and the trust of its customers. 3. Retail expansion: Group retail revenues increased by 18.2%, driven by strong like-for-like sales growth from existing stores and the opening of four new stores. Retail revenues in KSA grew by 20.9%, while Egypt increased by 11.9% (in SAR terms). |
| The reason of the increase (decrease) in the net profit during the current year compared to the last year is | 1. The Group reported a net loss of SAR 42.2 million compared to a net profit of SAR 11.7 million in the previous year. This transition to a net loss is primarily attributable to the following non-recurring and exceptional items: • Expected Credit Loss (ECL): An increase in ECL provisions driven by the sharp rise in global gold prices, combined with a one-off provision resulting from disputes with certain wholesale customers over outstanding balances. • Misappropriation losses: The recording of one-off losses related to Company salesmen misappropriation incidents. Management has taken firm legal and recovery measures, and filed relevant insurance claims, to be collected in year 2026. • Gross profit: While statutory Gross Profit, which includes the gold value, declined by 5.0%, from SAR 223.0 million to SAR 211.9 million, the Group's Gross Profit from Operations (excluding gold metal value) significantly improved by 14% from SAR 283.8 million to SAR 323.6 million, reflecting strong underlying commercial margins. This is the highest level of gross profit achieved since 2016. • Normalized net profit: Excluding the above one-off extraordinary losses (ECL and misappropriation losses), the Group’s normalized net profit for 2025 would have been SAR 2.0 million. 2. Basic Loss per Share was SAR 0.73 compared to Earnings per Share of SAR 0.20 in the last year. 3. Total Shareholders' Equity decreased by 12.0% to SAR 245.7 million. However, excluding the negative Currency Translation Reserve, which 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 would be SAR 603.0 million. |
| Statement of the type of external auditor's report | Unmodified opinion |
| 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 | Unprecedented commercial growth and strong pricing power reinforcing brand leadership The year 2025 marked a historic milestone in L’azurde’s business journey. The Group achieved notable growth, recording its highest-ever operating revenue of SAR 540.4 million. This momentum translated into solid positive operating cash flows of SAR 46.3 million, reinforcing the company’s ability to self-finance its operations and expansion plans. Structural optimization and governance: This exceptional operating performance provided the Group with the strength required to execute a carefully planned phase of “structural optimization” during 2025. As L’azurde advances towards a higher-margin retail model, management took a proactive and necessary step to settle legacy credit provisions and certain non-recurring operational items within the wholesale business. The Board of Directors maintained direct oversight of this transformation, focusing on strengthening the risk management framework and enhancing internal controls. By cleaning the Balance Sheet of these legacy items, L'azurde enters 2026 with a highly transparent and efficient financial position. Retail engine and digital platforms: 53% of Group operating revenues The continued shift towards excellence in direct-to-consumer retail lies at the heart of L’azurde’s evolution. Retail revenues grew by 18%, now accounting for 53% of the Group’s operating revenues. At the same time, L’azurde achieved a key digital milestone, as its e-commerce segment turned profitable for the first time following a 17% increase in digital sales, confirming the success of the Group’s omnichannel strategy. Future outlook 2026: Sustainable and scalable growth As L’azurde continues to execute its strategic roadmap, the company is expanding into high-margin, capital-efficient service segments, led by its gold refinery business. The Group has also significantly mitigated financial risk in 2025 by significantly reducing gold loan quantities by 11% to 3.7 tons, the lowest gold working capital level achieved in the past 15 years. This enables lower leverage, reduced financing costs, and a stronger structural foundation aligned with its firm commitment to maximizing shareholder value through disciplined financial management and prudent risk oversight. For more information, we would like to draw the attention of the shareholders that the Consolidated Financial Statements for the year ended 31 December 2025 will be available on the Company’s website (http://www.lazurde.com) under investors’ relations section. |
