Al Hassan Ghazi Ibrahim Shaker Company (Shaker Group), Saudi Arabia's leading manufacturer, importer and distributor of air conditioners and home appliances, said it focused on strengthening its operational and financial foundations during the first half, prioritising cost optimisation, capital discipline, working capital efficiency and cash generation amid changing market conditions.

It reported revenue of SAR743.1 million ($198.2 million) for H1, down 3.4% from the same period a year earlier, mainly due to a decline in its heating, ventilation and air-conditioning (HVAC) solutions business.

Its HVAC solutions revenue fell 9.2% year-on-year to SAR484.8 million, reflecting the timing and selective execution of projects during the period, Shaker said.

The decline was partly offset by continued growth in the home appliances segment, supported by stronger performance across retail, wholesale, e-commerce and shop-in-shop channels.

During the first six months, the Group maintained a disciplined approach to execution, prioritizing stronger cash generation, balance sheet resilience, cost optimization and operational efficiency while continuing to invest in its long-term growth priorities, stated Shaker Group in its statement. 

Through these initiatives, Shaker strengthened its financial foundations, advanced key strategic initiatives and positioned the business to capitalize on future growth opportunities.

According to Shaker Group, the profitability was impacted by lower contributions from HVAC projects, higher logistics and component costs, and a reduced share of profit from associates.

The HVAC group continued to implement cost optimisation measures, maintaining strict control over operating expenses, procurement and resource allocation to improve operational efficiency and strengthen its balance sheet, it added.-TradeArabia News Service