Interview by: Mohamed Idris
Riyadh – Mubasher: L'azurde commenced its listing and trading on the Saudi Stock Exchange (Tadawul) on Wednesday, coinciding with its plans to expand its operations to countries where the company isn't present.
The Saudi-based jeweller is also planning to acquire companies operating in the same field in the region and is close to completing its second factory in Egypt this year, CEO Selim Chidiac told Mubasher in an exclusive interview.
The Saudi jewellery maker’s listing marks the fourth listing on Tadawul in 2016. The company posted a revenue of SAR 2.8 billion ($750 million) last year.
Chidiac revealed that L’azurde was working on achieving further growth by launching several new operation lines which include 18- and 21-carat gold and diamonds.
“We are investing in technology that will define L’azurde’s jewellery from other brands,” the CEO stated, noting that the company was also working on expanding in new markets and developing its retail stores.
“We are also considering a number of acquisitions in the region,” he told Mubasher.
Commenting on the dividend distributions for H1-15 and H1-16, which amounted to SAR 0.74 per share, Chidiac said his company had distributed dividends representing 50% of capital in the past four years. However, after the initial public offering (IPO), the board will carry out its annual review and will decide at the end of the year on the dividends to be given to shareholders.
“We are working on enhancing the company’s performance so as to continue distributing dividends,” Chidiac said.
After opening its first factory in Egypt nearly 12 years ago, L’azurde recently announced plans to open a second one, which is slated for completion later this year, according to the top executive, who revealed that the Saudi jeweller has a 25% market share in Egypt.
“L’azurde has been present in the Egyptian market for 13 years and has over 1,000 employees in the country,” Chidiac added.
As for L’azurde’s branches in Saudi Arabia, the CEO revealed that the company has a 25% market share in the Kingdom as well as 12 retail stores and 4 wholesalers.
On another note, the CEO commented that gold prices affect market demand.
When there is a rise in gold prices, L’azurde has the strategy and technology to distinguish its brand in the market, by producing a large number of light-weighted products. But when prices decline, we launch new lines with the aim of boosting distribution and increasing profitability, Chidiac said.
Translated by: Nada Adel Sobhi
