Lazurde Company for Jewelry announces its Interim Financial results for the Period Ending on 2026-03-31 ( Three Months )

1. Operating revenues: Group operating revenues (which better represent the revenues of the Group after excluding the gold metal value and its price increase) increased by 6.4% in the first quarter of 2026 to reach SAR 170.8 million, compared to SAR 160.5 million in the same quarter of last year.

2. Wholesale growth: Group wholesale operating revenues increased by 7.0% in the first quarter of 2026 when compared to same quarter of last year. This was due to the successful increases of Labor Service Charges (LSC) 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 6.0% in the first quarter of 2026 when compared to same quarter of last year, driven by strong like-for-like sales growth from existing stores and the opening of three new stores in the last twelve months.

2. The Group achieved a net profit of SAR 3.6 million in the first quarter of 2026 compared to SAR 13.3 million in the same quarter of last year, despite higher revenues and operating profit. The decline is primarily attributable to an increase in finance costs driven by 69% higher gold prices in Q1 2026 compared to Q1 2025, despite record reduction of 11% in gold working capital volumes, from 4.0 tons as at 31 March 2025 to 3.6 tons as at 31 March 2026. The Group have succeeded in reaching the lowest gold working volume in the last 15 years.

3. Total Shareholders' Equity on 31 March 2026 decreased by 19.9% to SAR 235.0 million compared to SAR 293.3 million on 31 March 2025. However, excluding the negative Currency Translation Reserve, which is a non-cash item that arises on consolidation only and fluctuates with the changes in foreign exchange rates and it has no real impact on the company's financial position, total Shareholders’ Equity would be SAR 606.5 million.

2. Operating revenues were SAR 170.8 million in the first quarter of 2026, an increase of 44.6% compared to SAR 118.1 million in the fourth quarter of 2025, due to seasonality.

The first quarter of 2026 marked a robust and stable milestone in L’azurde’s business journey. The Group achieved notable growth in total revenue and operating revenue in the first quarter compared to same quarter of last year. This momentum translated into solid positive operating cash flows of SAR 25 million in first quarter of 2026, reinforcing the company’s ability to self-finance its operations and expansion plans.

Retail engine and digital platforms: 52% 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 6.6% in first quarter of 2026, now accounting for 52% of the Group’s operating revenues. At the same time, L’azurde achieved a key digital milestone, as its e-commerce segment achieved 13% increase in digital sales in the first quarter of 2026, confirming the success of the Group’s omnichannel strategy. In Q1-2026, Group e-commerce sales now represent 17% of Group’s total retail sales.

Future outlook: Sustainable and scalable growth

As L’azurde continues to execute its strategic roadmap, the company plans to expand into high-margin, capital-efficient service segments, led by its gold refinery business. The Group has also largely mitigated financial risk by significantly reducing gold loan quantities, now operating at the lowest gold working volume in the last 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 period ended 31 March 2026 will be available on the Company’s website (http://www.lazurde.com) under investors’ relations section.