Jarir Marketing Profits Increased by 7% during 3Q to SR272.5 million

Jarir Marketing Company net profit after zakat and tax increased to SR272.5 million during the third quarter, compared to SR255.2 million during the same quarter of the previous year at a rate of 6.78%.

This came after the company announced its estimated financial results for the period ending on 2021-09-30 (Nine Months).

The operational profit amounted to SR292.6 million during the third quarter, compared to SR274.9 million during the same quarter of the previous year with an increase of 6.44%.

The gross profit amounted to SR344.1 million during the third quarter, compared to SR334.5 million during the same quarter of the previous year with an increase of 2.87%.

The net profit after zakat and tax during the current period amounted to SR729.4 million, compared to SR715.3 million during the same period of the previous year with an increase of 1.97%.

The profits per share during the current period amounted to SR6.08, compared to SR5.96 during the same period of the previous year.

The reason for the rise in profits is due to the Increase in sales of certain sections specially the school and office supplies and smartphones, as a result of the partial back to school season during this quarter and the launch of the new iPhone, compared to the same quarter of last year which did not include either of these two events. The increase is also attributed to the increase in the other income.

“Despite the slight increase in sales during the 9 month period compared to the same period of the last year, such increase was insufficient to cover the increase in direct operating costs included in the calculation of gross profit, which decreased by 2.3%. ” the company said.

Notwithstanding the foregoing, the net profit increased by 2% due to the decrease in general and administrative expenses, which included in the same period of the last year the voluntary contributions amounting to SR25 million made by the company to support government initiatives.

The increase in net profit is also attributed the decrease in selling and marketing expenses and financing cost, and the increase in other income.