Saudi's Shaker Group reports 9M loss due to market 'headwinds'
Sales for the nine months ending 30 September fell 27.2% at the AC company
Saudi Arabia-based air-conditioning (AC) provider Shaker Group has cited several market headwinds for year-on-year losses experienced during the first nine months (9M) of this year, after the Tadawul-listed firm released its latest financial results.
According to a statement by Shaker, net losses for the nine-month period ending 30 September 2018 increased compared to 9M 2017, "mainly due to a decrease in sales of 27.2%”.
This fall, the group added, resulted from “sustained market headwinds that include increased competition, muted customer demand, and reduced spending on real estate and construction projects in Saudi Arabia”.
“We remain confident that the market for AC and home appliances shows long-term promise, which we will actively exploit,” it added.
With these figures in mind, the group said it managed to reduce general and administrative expenses by 11.4% for the nine months ended 30 September 2018, while selling and distribution expenses decreased by 12.8% and other expenses decreased by $3.79m (SAR 14.2m).
Speaking on the news, Eng. Azzam Saud Almudaiheem, Shaker Group’s chief executive officer, said: “While we continue to face pressure on sales revenues as a result of market challenges including increased competition, a lackluster construction sector and unfavorable seasonality in the third quarter, we are pleased that our efforts to reduce operating expenses and improve efficiencies are delivering results.”
“We remain confident that the market for AC and home appliances shows long-term promise, which we will actively exploit.”
The figures come amid a period of innovation in the region’s air conditioning market over the last few years.
For example, variable refrigerant flow (VRF) continue to be proffered as viable air-conditioning (AC) components, yet the Middle East’s construction sector is yet to fully understand its benefits, as Construction Week reported in September this year.