1. Group operating revenues for the first quarter of 2019 were SAR 153.0 million, an increase of 33.0% compared to SAR 115.0 million in the same quarter of last year. Egypt’s revenues continued to perform strongly with growth of 18.5% in the wholesale channel due to a successful advertising campaign and strong customer uptake of new collections. Egypt’s retail revenues increased by 56.8% compared to the same quarter of last year due to the successful opening of six new outlets during the last twelve months. Also, Egypt retail like-for-like shops revenues increased by 20% in the first quarter of 2019. In KSA, wholesale revenues increased by 24.5% compared to the same quarter of last year due to a successful new collection and celebrity endorsement campaign. Also, KSA’s retail revenues increased by 55.6% mainly due to consolidation of revenues of the recently acquired franchise business of Tous which was acquired at the end of October 2018.

2. Gross profit of SAR 96.0 million for the first quarter of 2019, was 40.2% higher than the same quarter of last year of SAR 68.5 million mainly due to higher operating revenues. Gross Profit margin also improved by 3.2% due to cost saving initiatives that contributed in reducing production costs.

3. Operating expenses of SAR 65.6 million for the first quarter of 2019 were 44.4% higher than the same quarter of last year of SAR 45.4 million mainly due to higher marketing expenses, higher variable expenses related to higher revenues, consolidating operating expenses of Tous, operating costs of new retail shops in Egypt and restructuring of the work force and associated training costs to meet the Saudization/Feminization requirements.

4. Operating profit of SAR 30.4 million for the first quarter of 2019 was higher by 31.9% compared to SAR 23.0 million in the same quarter of last year due to higher operating revenues as described above.

5. Net profit for the first quarter of 2019 amounted to SAR 12.0 million, an increase of 32.5% compared to SAR 9.0 million of net profit for the same quarter of last year due to higher operating revenues, despite an increase of SAR 1.6 million in Egypt subsidiaries corporate tax expenses.

6. Gross profit, operating profit and net profit represented 62.7%, 19.9% and 7.8% of operating revenues for the first quarter of 2019 compared to 59.5%, 20.0% and 7.8% for the same quarter of last year respectively.

7. For the first quarter of 2019 ended on 31 March 2019, the Comprehensive Income attributable to shareholders of the Company amounted to SAR 14.7 million, increased by 17.1% compared to Comprehensive Income of SAR 12.6 million in the same quarter of last year.

8. Basic Earnings per Share (“EPS”) based on profit attributable to shareholders of the Company for the first quarter of 2019 was SAR 0.28 compared to SAR 0.21 in the same quarter of last year.

9. Total Shareholders’ Equity was SAR 440.8 million at 31 March 2019 compared to SAR 426.1 million as at 31 December 2018, an increase of 3.4%.

2. Net income of SAR 12.0 million for the first quarter of 2018 was higher than the net income of the fourth quarter of 2018 of SAR 0.1 million due to higher operating revenues in the first quarter of 2019.

3. For the first quarter of 2019, the Comprehensive Income attributable to shareholders of the Company amounted to SAR 14.7 million, compared to Comprehensive Income of SAR 1.2 million in the previous quarter.

The company continues to focus on a top execution of the following strategic initiatives:

1. Revitalize our wholesale business through the launch of new premium collections and celebrity based promotions;

2. Expand the newly acquired Tous franchise business in KSA;

3. Develop our profitable L’azurde retail business in Egypt;

4. Improve manufacturing productivity by reducing costs, leveraging technology and 3D printing capabilities;

5. Improve the profitability of the L’azurde retail business in KSA by rationalizing our footprint, re-invigorating our flagship shops, leveraging our exclusive airports retail operations and staff training;

6. Reduce working capital through improved collections, manufacturing efficiencies and accelerated reduction of old stocks; and

7. Pursue our M&A strategy by identifying attractive targets where we can add value, grow our profits and offer attractive return to our shareholders.

Considering the above initiatives, and the underlying fundamentals supporting the jewelry industry in the long term, we believe that the L’azurde Group is in a strong position to deliver its longer term growth ambitions.

For more information, we would like to draw the attention of the shareholders that the Consolidated Financial Statements for the first quarter ended 31 March 2019 and earnings presentation will be available on Company’s website (http://www.lazurde.com) under investors’ relations section.