Business | Markets
Damas profit jumps 133% to Dh165m
Group's revenue grows 33.7% to Dh2.4b, up from Dh1.8b during the first half of 2007.
- Staff Report
- Published: 23:53 August 29, 2008
Dubai: Damas International Ltd, the international integrated jewellery and watch retailer, yesterday reported a 132.9 per cent jump in net profit to Dh164.8 million during the first half of 2008, up from Dh70.8 million recorded in the corresponding period last year.
"The group's revenue grew by 33.7 per cent to Dh2.4 billion, up from Dh1.8 billion during the first half of 2007, in spite of high gold prices," the company, listed on the Dubai International Financial Exchange (DIFX), said in a statement.
The company's gross profits rose by 71.4 per cent to Dh456.7 million, up from Dh266.5 million and the gross margins increased to 19.1 per cent from 14.9 per cent during first half of the last year.
The company completed its initial public offering (IPO) by raising $270.6 million on July 8.
Damas opened 42 new stores to bring the total to 467. Eleven of the new stores were in the UAE, including the first stand-alone Parmigiani and Links of London Boutiques. Fourteen shops were in other Gulf countries and 17 outside the region.
"Damas plans to open around 80 shops by end of 2008 to bring the total to 131 stores opened this year," the company statement said.
The company plans to use up to 40 per cent of IPO funds for expansion and acquisitions. It plans a 50 per cent output capacity hike at a gold factory it owns jointly with Emaar Industries and Investments by end 2009.
"UAE stores remain major contributor to revenue among other markets," the company said.
It launched 14 new jewellery collections of its own and international brands.
The company also launched the Damas cut, a 77-facet premium diamond cut with an exclusive jewellery collection.
Tawhid Abdullah, chief executive and managing director of Damas, said: "This is our first set of results as a public company and I am delighted to report that we have seen strong growth across the business.
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