1. Q2 revenue of SAR 289.5 million improved by 8.1% or SAR 21.7 million compared to the Q2 2020 revenue of SAR 267.8 million.

2. Top-line growth resulted in gross profit growth of 17.7% or SAR 9.2 million

3. Operational profit improved by SAR 7.2 million to SAR 14.4 million compared to SAR 7.3 million in the second quarter of the previous year.

1. Sales increased by 0.4% compared to the previous quarter

2. Top-line growth resulted in gross profit growth of 6.4% or SAR 3.7 million

3. Expanding product portfolio and growth strategy implemented in the first half of the year

4. Operational profit improved by SAR 12.8 million to SAR 14.4 million, up from SAR 1.6 million in the previous quarter.

1. Sales revenue in the first half increased by 18.2% year-on-year

2. Gross profit increased by 17.2% year-on-year.

3. Finance costs decreased by 33.2% year-on-year

4. Operational profit improved of SAR 16.0 million in H1 2021 compared to SAR 3.4 million in 2020

a) The unrealized profit on upstream transactions between the Company and its associate were not eliminated in prior years. Therefore, the investment in associate and share of profit from the associate balances amounting to SR 15.4 million have been corrected retrospectively.

b) Included within trade receivables was a receivable balance amounting to SAR 28.64 million in relation to advisory services offered by one of the Group’s subsidiaries. Based on the memorandum of understanding between the subsidiary and its customer, the fees were contingent in nature. Therefore, these balances are corrected retrospectively and the related expected credit loss of SR 7 million, which was recognized during the three-month period ended March 31, 2021 is also reversed and its effect has been captured as part of the six-month period ended 30 June 2021 financial results.

c) The presentation of the statement of financial position is changed retrospectively for better understanding and presentation by segregating prepayments and other receivables from trade receivables. The effects are the reclassification of SR 4.2 million as at December 31, 2020 compared to SR 3.5 million as at January 1, 2020 from trade receivables to prepayments and other receivables.

The total cash flows from operating, investing and financing activities were not affected because of these restatements. The effects of the restatements in the statement of cash flows are primarily in adjustments for non-cash items and changes in working capital within cash flows from operating activities and hence, are not disclosed separately.

Shaker achieved revenue of SAR 289.5 million, growing by 8.1% as compared to Q2 2020, and 0.4% compared to the previous quarter. Gross profit of SAR 61.3 million increased by 17.7% year-on-year. Shaker’s Q2 net profit reached SAR 10.8 million, an improvement from a net profit of SAR 7.6 million in Q2 2020.

Shaker was successful in mitigating the impact of pressure on sales in the second quarter resulting from shorter working days in Ramadan and the Eid break by ensuring smooth coordination across all departments. Strategic acquisition of brands in previous quarters has developed a healthy product mix that continues to drive sales in the Home Appliances sector, and continues to be an important source of revenue as the Company continues to return improving profits.

The accumulated losses to capital ratio improved to 25.3% in 2021 from 28.1% in 2020 after re-statement of financials of previous year. In this instance, the CMA’s rules and regulations for listed companies with total accumulated losses of 20% or more of capital will be applied.

Earnings / (Loss) calculation per Share:

All figures are in (Thousands) Saudi Arabia, Riyals

Profit for the Q2 2021 SAR 10,766

Less: Non-Controlling interests SAR 2,011

Profit attributable to owners of the company (A) SAR 8,755

Number of shares (B) 63,000

Profit per share (calculated (A) divided by (B)) SAR 0.14

Profit for the Q2 2020 SAR 7,568

Less: Non-Controlling interests SAR (50)

Profit attributable to owners of the company (C) SAR 7,618

Number of shares (D) 63,000

Profit per share (calculated (C) divided by (D)) SAR 0.12

Outlook and strategy

The Company continues to roll out its new strategy that will take the business through to 2023, prioritising the diversification of the brand portfolio and becoming the preferred choice for partners and customers in the Saudi consumer electronics and home appliances sector, while continuing to maintain its market leadership in the Saudi AC market.

Opportunities continue to emerge as a result of government projects and real estate initiatives and Shaker continues to capture a healthy share of these contracts. Mega projects, including Neom, Amaala and Red Sea Development, remain a steady and important source of opportunities for Shaker’s AC business in tandem with energy efficiency programs by the government, including Saudi Energy Efficiency Center’s (“SEEC”) high-efficiency AC initiative, and Tarsheed, the Saudi government’s National Energy Services Company.

Improving market share across the segments in which Shaker operates remains a priority for the management team. In the first half of the year, Shaker has succeeded in growing market share in the Home Appliance segment while steadily growing the AC segment. Business segment sales teams continue to regularly exceed monthly sales targets against forecasts, demonstrating healthy market appetite for Shaker’s products and services.

Shaker remains agile in its approach towards brand acquisitions, seeking first to complement the strong line-up of brands already on offer. Consumer demand for energy efficient Home Appliances continues to increase as the market recovers and retail stores re-open, along with the recovery of consumer purchasing power.