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L’azurde to boost profits via Izdiad acquisition

L’azurde to boost profits via Izdiad acquisition
L’azurde to boost profits via Izdiad acquisition
LAZURDE
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Riyadh – Mubasher: L’azurde Company for Jewelry on Tuesday announced its full acquisition of Izdiad Commercial Company of Arabia, the sole franchisee and operator of the TOUS international franchise in Saudi Arabia.

The acquisition comes after L’azurde signed a share purchase agreement (SPA) with Izdiad in August, which was then inked between Tamkeen Industrial and Trading Co. Limited, Mr. Bassim Ahmed Al Juhany and L’azurde.

The acquisition “represents a major development” for L’azurde, whose objective is to establish a strong presence in the affordable jewelry segment, the company said in a statement to the Saudi Stock Exchange (Tadawul).

The deal will also help L’azurde boost its profitability, particularly after Izdiad witnessed continued revenue and profit growth since its inception, the Saudi jewellery maker added.

Izdiad achieved a net income of SAR 18.8 million in 2017.

L’azurde further revealed that it financed the acquisition through a combination of bank credit facilities and cash equity from its operational activities.

It is worth noting that TOUS is an international lifestyle affordable luxury-focused brand that has been in business for almost a century. It has as much as 663 branches spread across 53 countries. It has been operating in Saudi Arabia since 2008 with 22 stores across the country.

“As a franchisor, TOUS designs, manufactures and sells jewelry, bags and accessories for women and men. Their offering covers a wide range of products including fine jewellery with diamond, gold and silver, its core business, and handbags, fragrances and accessories,” L’azurde concluded.

L’azurde last reported profit falls in its Q2-18 and Q1-18 results. The jewellery maker logged SAR 4.8 million in net profit, down 24.6% year-on-year from SAR 6.4 million in Q2-17, whereas in H1-18, the firm’s profits retreated 51.2% to SAR 13.9 million from SAR 28.4 million during H1-17.