(MENAFN- ipexcellera) Riyadh, Saudi Arabia, 5 November 2025: Al Hassan Ghazi Ibrahim Shaker Co. (“Shaker”, the “Group” or the “Company”), Saudi Arabia’s leading manufacturer, importer, and distributor of air conditioners and home appliances has announced its 9M 2025 results, posting stable performance supported by resilient demand, disciplined cost management, and continued execution of its Elevate 2027 strategy.

Financial Highlights:
• Revenue reached SAR 344.91 million in Q3 2025, down 3.8% year-on-year (YoY), and SAR 1,114.09 million in 9M 2025, broadly in line with the prior year (-0.3% YoY). The 9M performance reflects softer HVAC segment results, which declined 3.1% YoY (Q3 down 12.9%), partially offset by a growth in the Home Appliances segment, up 5.7% YoY (Q3 up 30.5%). ‘Other’ revenue coming from new ventures in 3PL & services also contributed positively, growing 143.9% YoY (Q3 up 98.8%).
• Gross profit of SAR 85.74 million in Q3 2025, down 3.5% YoY, and SAR 278.99 million in 9M 2025, up 3.4% YoY, reflecting improved margins year-to-date (YTD) due to an optimized mix, while Q3 decline was in line with lower revenue.
• Operating income reached SAR 21.42 million in Q3 2025, down 5.2% YoY, while 9M 2025 operating income rose 1.1% YoY to SAR 66.18 million, reflecting disciplined cost management and lower impairment charges, offset by higher general and administrative expenses.
• Net profit1 of SAR 17.82 million in Q3 2025, up 0.6%, and SAR 64.92 million in 9M 2025, down 2.3% YoY, mainly due to a lower share of profit from the associate, partially offset by lower finance costs.
• Net Debt increased by 53.0% YoY to SAR 376.29 million, mainly due to lower cash from operating activities driven by higher inventories and receivables.
1: Attributable to equity owners

Mohammed Ibrahim Abunayyan, Chief Executive Officer at Shaker, said:
“The third quarter continued to show the strength of our Elevate 2027 strategy, as we advanced partnerships, deepened localization, and grew our retail presence. With ‘shop in shops’ now live in Abyat in Riyadh, Jeddah, and Dammam, we are proud to have achieved our 2025 target of 15 stores through a capital efficient model that brings our full portfolio closer to customers. Our collaboration with LG and DataVolt for providing HVAC Solutions to AI data centers reinforces Shaker’s role in delivering advanced, sustainable cooling solutions for the Kingdom’s digital transformation. We also launched our first locally manufactured Air Handling Unit, marking a key milestone in building industrial capability within Saudi Arabia. We will continue to execute with precision and pace, deepen localization across our supply chain, and compound growth in support of the Kingdom’s ambitions.”

Financial Updates
Revenue was SAR 344.91 million in Q3 2025, down 3.8% YoY, and SAR 1,114.09 million in 9M 2025, down 0.3% YoY. The decline was mainly driven by a softer local market that affected HVAC demand across retail and project channels. HVAC decreased 12.9% YoY in Q3 2025 and 3.1% YTD. This was balanced by strong performance in Home Appliances, which grew 30.5% YoY in Q3 2025 and 5.7% YTD, supported by sustained consumer demand and contributions from the additional portfolio of brands which saw strong uptake. Other revenue from new ventures in 3PL and aftersales services more than doubled YoY, from SAR 3.25 million in 9M 2024 to SAR 7.92 million in 9M 2025, which is one of the key focus areas under Elevate 2027. The B2B and B2C split, excluding other revenue, stood at 41% and 53% respectively for 9M 2025.

Gross profit was SAR 278.99 million in 9M 2025, up 3.4% YoY. YTD gross margin improved to 25.0% from 24.2% last year, supported by an optimized mix from Home Appliances combined with channel, product and customer mix. Pricing remained stable, and cost of sales was contained through active portfolio and channel mix management. The improvement in margin offset a largely flat top line, leading to higher YTD gross profit.

Operating income reached SAR 66.18 million in 9M 2025, up 1.1% YoY, reflecting disciplined selling and distribution spend and overall cost control, partly offset by higher general and administrative costs as the Company continued to invest in strengthening its talent base. Operating margin stood at 5.94%, broadly in line with 5.86% last year.

EBITDA stood at SAR 98.99 million in 9M 2025 versus SAR 104.26 million last year. EBITDA margin was 8.9% compared to 9.3% last year, mainly due to lower share of profit from the LG-Shaker Joint Venture.

Net profit attributable to equity holders was SAR 64.92 million in 9M 2025, down 2.3% YoY. The movement mainly reflected a decline in share of profit from the associate and higher foreign exchange losses, partly offset by lower finance costs and steady operating performance. Net profit margin was 5.8% compared to 5.9% last year.

Shaker will prioritize disciplined capital allocation, tighter working capital, and margin-accretive growth across HVAC and Home Appliances, leveraging Elevate 2027 to deepen brand partnerships, capture project-led demand, and deliver consistent, cash-generative performance.

Operational and Strategic Updates
A key Elevate 2027 milestone was achieved in 2025 with Shaker reaching its target of 15 stores through the launch of its ‘shop in shop’ concept. Three ‘shop in shops’ were inaugurated within Abyat, one of the leading home improvement and lifestyle retailers in Saudi Arabia, during September and October. The branches in Riyadh, Jeddah, and Dammam showcase Shaker’s complete portfolio including TVs and home entertainment, small and major domestic appliances, built in products, air conditioners, and more. The ‘shop in shop’ model is capital efficient as it leverages partner floorspace rather than large standalone stores, while maintaining strong presence through unified merchandising, trained promoters, and coordinated campaigns. Additional ‘shop in shops’ are planned for next year to extend reach across key cities.
During the third quarter, Shaker strengthened its innovation and partnership agenda in line with Elevate 2027, advancing its role in enabling the Kingdom’s digital and sustainable transformation. A key highlight was the MoU with LG Electronics and DataVolt to provide state-of-the-art cooling for the AI data centers. The agreement builds on Shaker’s LG partnership and supports Vision 2030, combining LG’s technology, DataVolt’s infrastructure, and Shaker’s Saudi manufacturing to deliver advanced, sustainable HVAC for large-scale digital projects. Subject to final contracts, the partnership creates a multi-year pipeline across supply, installation, and recurring maintenance under Elevate 2027.
Additionally, the Group launched its first locally manufactured Air Handling Unit at the LG Shaker Factory. The new product strengthens local industrial capacity, and enhances energy efficiency across residential, commercial, and specialized facilities, consistent with Elevate 2027 priorities on localization and performance.
In parallel, Shaker strengthened its strategic partnerships and project collaborations to expand service coverage, enhance execution capability, and promote energy-efficient HVAC deployment across the Kingdom. Through its agreement with Olaat Development Group, Shaker will deliver nationwide HVAC services combining Shaker’s technical expertise with Olaat’s facility management strength. The partnership includes annual maintenance contracts, replacement and retrofit programs, and modernization projects that enhance reliability, improve performance, and optimize energy use across residential and commercial facilities.
Under the partnership with Liwan Real Estate Development Company, Shaker will supply high-efficiency LG air conditioning systems for Liwan’s housing developments. The program aligns with national energy efficiency standards and focuses on reducing lifecycle costs through optimized design, superior installation quality, and ongoing after-sales support, directly contributing to Saudi Arabia’s Vision 2030 sustainability goals.
Together, these partnerships advance Elevate 2027 by strengthening Shaker’s service offering, deepening its role in large-scale projects, and reinforcing its position as a trusted enabler of localized, energy-efficient HVAC solutions in Saudi Arabia.
Finally, on sustainability and people, Shaker achieved Diamond Tier recognition from Mudad for full compliance with the Wage Protection System, underscoring its commitment to transparency and employee welfare. The Group also strengthened community partnerships through agreements with the Ensan Association and Khairat Association, promoting employment opportunities, training, and initiatives that reduce food waste and encourage volunteerism.
During the period, Shaker celebrated 30 years of partnership with Ariston in Saudi Arabia, a significant milestone reflecting three decades of shared success, innovation, and trust, with over 1.5 million products sold across more than 300 outlets nationwide.
Shaker is also proud to have received Midea’s Vanguard Award for strategic partnership, recognizing collaboration, quality, and consistent delivery across the Kingdom.
Outlook

Shaker remains focused on execution, cost efficiency, and preparing the business for long-term growth under its Elevate 2027 strategy. While market dynamics remain mixed across segments, the Company continues to prioritize opportunities that support sustainable margins and operational resilience.

In the B2B segment, Shaker is focusing on healthy engagement in targeted tenders. The Company’s retrofit and after-sales services are seeing growing traction, with Annual Maintenance Contracts (AMC), installation and energy management services showing consistent growth and contributing to a more stable recurring revenue base and deeper customer relationships.

In retail, the emphasis is on quality-led performance. Shaker is focused on optimizing store-level productivity, enhancing the product mix, and driving better integration across physical and digital channels. The introduction of new brands and products will be paced carefully to align with commercial planning and supply chain visibility.

Meanwhile, the Company is advancing development of its own OEM (Original Equipment Manufacturer) brand, targeting a 2026 launch. This initiative is a key strategic milestone that will diversify the product portfolio and reinforce Shaker’s positioning in the Home Appliances segment.

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