Lazurde Swings to Profit in Nine-Month Results

Riyadh, Saudi Arabia — Lazurde Company for Jewelry returned to profitability in the first nine months of 2026, posting a net profit of 0.2 million SAR compared to a net loss of 16.8 million SAR in the same period last year. Total revenues rose 29.3% to 2,940.4 million SAR, driven by surging gold prices and stronger wholesale performance. Operating profit more than doubled, climbing 146% to 64.8 million SAR from 26.3 million SAR a year earlier.

Third Quarter Breakdown

Lazurde’s third quarter showed continued momentum. Revenue reached 1,019.0 million SAR, up 14.1% from 893.2 million SAR in the same quarter last year and up 14.9% from 887.1 million SAR in the prior quarter. Gross profit rose 11.7% year-on-year to 66.8 million SAR. Operating profit jumped to 25.8 million SAR from just 9.8 million SAR a year ago — a 163% increase. Net profit came in at 1.8 million SAR, reversing a loss of 4.3 million SAR in the year-ago quarter and a loss of 5.2 million SAR in the prior quarter.

Key Drivers

• Gold prices: Higher global gold prices inflated total revenue figures significantly. Operating revenues — which strip out gold metal value — grew a more modest 6.1% over nine months to 448.0 million SAR.
• Wholesale strength: Wholesale operating revenues rose 12% over nine months and 10% in the third quarter alone, supported by higher labor service charges on new designs.
• Retail mixed: Retail revenues grew 1% over nine months, now representing 50% of operating revenues. Third-quarter retail declined 4.4% year-on-year, partly due to regional geopolitical pressures. Saudi Arabia same-store retail sales rose 3% in the quarter.
• Gold reserve strategy: Lazurde began building its own gold reserve this year. This generated an unrealized fair value gain of 5.4 million SAR in Q3, but produced a 10.5 million SAR unrealized loss in Q2. The net nine-month impact was a 5.7 million SAR unrealized fair value loss.
• Shareholders’ equity: Total shareholders’ equity fell 12% to 236.3 million SAR. However, excluding the currency translation reserve — a non-cash item — equity stood at 603 million SAR.

What This Means for Investors

• Thin profitability: A net profit of 0.2 million SAR on nearly 2.95 billion SAR in revenue reflects extremely tight margins. Earnings per share rounded to zero for the nine-month period.
• Revenue quality: Most of the top-line growth reflects gold price inflation, not volume or pricing power. Operating revenues — the cleaner measure — grew only 6.1% over nine months.
• Gold reserve risk: The new gold purchasing strategy introduces mark-to-market volatility. It already swung from a 10.5 million SAR loss in Q2 to a 5.4 million SAR gain in Q3, complicating earnings visibility.
• Turnaround in progress: The shift from a 16.8 million SAR loss to a 0.2 million SAR profit over nine months signals real operational improvement. But the margin for error remains narrow, and retail headwinds in key markets bear watching.

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THE SAUDI STANDARD’S VIEW: LAZURDE’S TURNAROUND IS REAL — BUT THE HARD WORK BEGINS NOW

Lazurde’s return to profitability after a 16.8 million SAR loss is a meaningful inflection point for the company, but investors should read this result with discipline. The headline numbers carry significant noise, and the quality of the earnings matters as much as the direction of travel.

• SEPARATING GOLD PRICE TAILWINDS FROM OPERATIONAL PROGRESS

The 29.3% revenue surge is substantially a function of elevated global gold prices rather than earned business momentum. Stripping out gold metal value, operating revenues grew just 6.1% over nine months — a far more grounded measure of Lazurde’s commercial performance. Investors should anchor their assessment to that underlying figure when evaluating the company’s true competitive trajectory.

• WHOLESALE STRENGTH PROVIDES THE MOST CREDIBLE FOUNDATION

The 12% growth in wholesale operating revenues over nine months reflects genuine demand-side progress, supported by higher labor service charges tied to new product designs. This segment demonstrates that Lazurde is building value beyond commodity price exposure. Sustained wholesale momentum would represent the most defensible path toward durable margin expansion.

• THE GOLD RESERVE STRATEGY INTRODUCES EARNINGS VOLATILITY

Lazurde’s decision to build an in-house gold reserve shifts the company’s risk profile in ways that complicate earnings forecasting. The strategy produced a swing of nearly 16 million SAR between Q2 and Q3 on mark-to-market movements alone, with a net nine-month unrealized loss of 5.7 million SAR. Until this position matures into a disciplined hedging framework, it will remain a source of quarterly unpredictability that sophisticated investors must price into their models.

• RETAIL HEADWINDS DEMAND CLOSE MONITORING

The retail segment’s flat nine-month growth and 4.4% year-on-year decline in Q3 signal meaningful pressure in key regional markets. The bright spot — a 3% same-store sales increase in Saudi Arabia — points to domestic resilience, and that domestic performance deserves significant weight given the Kingdom’s expanding consumer base and rising jewelry demand. Lazurde’s ability to convert Saudi market strength into margin recovery will be a defining test of this turnaround’s durability.

Lazurde operates at the intersection of consumer spending, commodity markets, and design-led retail — sectors that Vision 2030 is actively transforming through tourism growth, rising household incomes, and the expansion of Saudi Arabia’s entertainment and lifestyle economy. A jewelry company with deep domestic roots and a strengthening wholesale network is structurally positioned to benefit from that transformation. The strategic question is whether Lazurde can convert the current operational recovery into the kind of margin discipline and brand equity that generates sustainable returns — not just profitability measured in fractions of a million riyal on nearly three billion in revenue.