On 2026-08-09 09:14:51 (Saudi Time), Lazurde Company for Jewelry announced its Interim financial results for the six months ended on June 30, 2026.

Year-on-Year Performance Drivers

For the six-month period ending 30 June 2026, sales/revenue rose 39.141% YoY to SAR 1,921.4 million (from SAR 1,380.9 million), driven primarily by surging global gold prices and improved operating performance, with group operating revenues growing 7.7% to SAR 299.7 million, wholesale operating revenues up 13% on higher Labor Service Charges, and retail revenues up 3% supported by like-for-like growth and three new store openings. Despite the strong top-line growth, gross profit increased only marginally by 1.378% to SAR 125.0 million (from SAR 123.3 million), as the revenue mix was heavily influenced by higher gold metal value rather than higher-margin operating revenues. Operating profit improved significantly by 61.825% to SAR 39.0 million (from SAR 24.1 million), though this was partially offset by a one-off non-cash unrealized fair value loss of SAR 11.2 million on gold inventory. Net loss attributable to shareholders narrowed substantially by 87.2% to SAR 1.6 million (from SAR 12.5 million), reflecting the improved operating performance despite ongoing financing costs and the non-cash gold valuation adjustment.

Quarter-on-Quarter Performance Drivers

QoQ revenue declined 14.231% to SAR 887.1 million in Q2 2026 from SAR 1,034.3 million in Q1 2026, driven entirely by seasonality, with operating revenues also falling 24.5% from SAR 170.8 million to SAR 128.9 million for the same reason. Net profit swung to a loss of SAR 5.2 million from a profit of SAR 3.6 million in the prior quarter, primarily due to the seasonal revenue decline compounded by a one-off non-cash unrealized fair value loss of SAR 10.5 million on excess gold inventory recently purchased to strengthen the Group's long-term operating model and reduce reliance on external gold financing.

Other Items

The external auditor issued an unmodified conclusion with no additional comments, emphasis of matter, or adverse opinions noted. No material risks such as going concern uncertainties or debt covenant breaches were flagged. Total shareholders' equity (after deducting minority equity) declined 10.408% to SAR 241.0 million as of 30 June 2026, compared to SAR 269.0 million as of 30 June 2025; however, the company noted in the announcement that excluding the negative Currency Translation Reserve, total shareholders' equity would be SAR 601.3 million, and that the Currency Translation Reserve "is a non-cash accounting adjustment arising from the translation of foreign operations upon consolidation and fluctuates with exchange rates and it does not affect the Group's operating cash flows." Loss per share for the six-month period was SAR -0.03, compared to SAR -0.22 in the same period of the prior year. No accumulated losses as a percentage of capital were reported. Certain comparative figures have been reclassified to conform to current year presentation. The company stated in the announcement that it "has also significantly reduced its financing risk by significantly reducing gold loan quantities, now operating at the lowest gold working volume in the last 15 years," which it expects "to contribute to lower leverage, reduced financing costs, and a stronger structural foundation."

Original announcement:

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