L'azurde Company for Jewelry reported consolidated earnings results for the second quarter and six months ended June 30, 2017. For the quarter, the company reported net profit of SAR 6,424,000 against loss of SAR 7,037,000 a year ago. Operational profit was SAR 15,726,000 against SAR 5,111,000 a year ago. Operating revenues amounted to SAR 82.2 million, declined by 23.0% compared to the same quarter of last year of SAR 106.8 million. This was mainly due to the Egyptian pound devaluation, the decline in export business and the overall lower consumer spending across all markets in addition to the company's strategy to reduce credit limits and accounts receivables in order to reduce risk and working capital cost. The increase in operating income was due to a one-off IFRS adjustments made in the second quarter of 2016 reducing gross profit by SAR 28.5 million, which will be reversed in the comparative figures of third quarter of 2017. The increase in net income was due to the one-off IFRS adjustments of SAR 28.5 million which reduced the gross margin in the second quarter of 2016. Total comprehensive income attributable to equity holders amounted to SAR 6.9 million compared to loss SAR 7.5 million in the corresponding quarter of the previous year. For the six months, the company reported net profit of SAR 28,412,000 against SAR 43,970,000 a year ago. Operational profit was SAR 50,543,000 against SAR 57,986,000 a year ago. Earnings per share were SAR 0.66 against SAR 1.02 a year ago. Operating revenues amounted to SAR 204.1 million, declined by 28.4% compared to the same period of last year of SAR 285.3 million. This was mainly due to the Egyptian pound devaluation, the decline in export business, and the overall decline in consumer spending across all markets, in addition to the company's strategy to reduce credit limits and accounts receivables in order to reduce risk and working capital cost. The decrease in operating income was mainly due to sales volume decline. Net income decreased was due to lower operating revenues during the period and the one-off gain in same period of last year from foreign exchange amounted to SAR 12.5 million offset by the one-off IFRS reclassification adjustment of SAR 28.9 million in the second quarter of 2016. Total comprehensive income attributable to equity holders amounted to SAR 26.4 million compared to SAR 10.5 million in the corresponding period of the previous year or an increase of 151%. Cash used in operating activities amounted to SAR 21.2 million, a decrease of SAR 11.8 million compared to SAR 9.4 million in the corresponding period of 2016, mainly due to reduction in net profit before zakat and taxes and the improvement in cash working capital.