L'azurde Company for Jewelry, the largest gold and jewelry designer, manufacturer, and distributor in the Middle East, announced Wednesday that its net Income for the first half of 2016 ended June 30 was SR72.6 million, an increase of 14.0% compared to the corresponding period of the previous year (SR63.7 million), based upon operating revenues of SR285.2 million. This was a result of a net income growth in Q1 of 24.3% and a Q2 net income decline of 5.1% compared to the corresponding period of the previous year. In challenging market conditions, the company was able to support sales at its own retail shops with strong promotions and new products leading to a 4.7% rise in revenues within the retail division during the six-month period compared to the corresponding period of the previous year. This was partially offset by a decline in wholesale revenues of 10.3% for the same six-month period. In order to continue growing its retail business, L'azurde has signed lease agreements to open four new showrooms in well-known malls across Saudi Arabia in 12 months. Sélim Chidiac, CEO of L'azurde, said: "Despite tough market conditions with lower levels of consumer spending, L'azurde's performance in the first half demonstrated a 14% increase in net income to SR72.6m. As is normal, we have seen seasonality within the results as the company achieved highest sales and profits in the first quarter of the calendar year. Growing sales in our own retail shops has been successful and we will maintain the focus on the retail expansion with the signing of lease agreements to open four new showrooms across KSA. We will continue to support our wholesale business, driving regional expansion plans and evaluating brand extensions and market gaps." In June 2016, L'azurde completed a successful initial public offering (IPO) on the Saudi Stock Exchange. Shares in L'azurde had been priced at SR37 per share, the top end of the range with the order book 8.6 times oversubscribed for the Institutional tranche and over 2.9 times oversubscribed for the retail tranche.
