Riyadh – Mubasher: L’azurde Company for Jewelry has announced signing “an exclusive operating agreement” to become the exclusive gold and jewellery supplier at three Saudi airports.

The deal signed with Saudi French Duty Free Operations and Management, a division of Lagardère Travel Retail will allow L’azurde to sell its products exclusively at King Khalid International Airport, King Abdulaziz International Airport, and King Fahd International Airport.

In accordance with the agreement’s terms, L’azurde will be the “exclusive vendor” of gold, diamond, and stone set jewellery and “non-exclusive vendor” of men’s accessories in airports in Riyadh, Jeddah, and Dammam.

This agreement is deemed as a new source of revenue for L’azurde Group through expanding the firm’s retail operations and targeting new segments of customers.

L’azurde is expected to invest SAR 15 million for making jewellery and men’s accessories to be distributed in the airports by the third quarter of 2017, according to the agreement.  

“The financial impact is expected starting from the fourth quarter of 2017 and it is expected to represent additional annual operating revenue at approximately 10% of total company’s annual total operating revenues,” the company said.

The deal was signed by Saudi Arabia’s Lagardère Travel Retail CEO David Bisset and L’azurde CEO Selim Chidiac at the jeweller’s headquarters in Riyadh, L’azurde said in a separate statement.

“Under this agreement, L’azurde will become the exclusive supplier of jewellery and gold at the international showrooms in Riyadh, Jeddah, and Damam, providing new revenue streams to the company and diversifying its revenues by expanding its retail operations, and targeting a new segment of customers,” the statement indicated.

Commenting on the deal, Chidiac highlighted that sales from the deal are expected to begin in the third quarter of 2017 at Saudi airports.

“[The] agreement with Lagardère Travel Retail is anticipated to increase L’azurde’s annual revenues by 10%,” the Saudi-listed jeweller’s CEO revealed.

Meanwhile, Bisset noted that his company was pleased to sign the deal with L’azurde owing to their strong reputation in the jewellery field and because their “jewellery products makes them the perfect fit for our expanding business.”

L’azurde Company for Jewellery is the largest gold and jewellery designer, manufacturer, distributor and retailer in the Middle East.

Lazurde had previously announced turning to profitability in Q2-17 with SAR 6.4 million against losses of SAR 7.04 million in Q2-16.