Jarir Marketing Profits Slips to SR992 mln at End of 2021, by 1%

Jarir Marketing Company net profit after zakat and tax slightly decreased to SR992 million during the year 2021, compared to SR1.003 million during the year before last, at a rate of 1%.

The operational profit during the current period amounted to SR1.06 billion, compared to SR1.1 billion during the corresponding period of the year before, a decrease of 4%.

The gross profit during the current period, it amounted to SR1.22 billion, compared to SR1.32 billion during the same period of the previous year, a decrease of 7%.

Profits per share during the current period amounted to SR8.27, compared to SR8.36 during the same period last year.

The reason of the increase (decrease) in the net profit during the current year compared to the last year is:

– Decrease in sales of certain sections specially the computers, computer supplies, and video games being impacted by the lack of supply. Despite the sales decrease of only 2.3%, the gross profit dropped 7.5% due to the fact that such sales were generated by a greater number of showrooms compared to the prior year meaning that the total showrooms operating cost increased while sales decreased 2.3%.

Although gross profit decreased 7.5%, the net income decreased only 1.1% due to:

– Increase in other income which included (among other factors) a capital gain of SR38 million on disposal of a parecl of land.

– Decrease in general and administrative expenses, which included in the prior year voluntary contributions amounting to SR25 million to support government initiatives.

– Decrease in finance cost.

– Decrease in zakat expense.

These estimated financial results for the year ended December 31, 2021 are prepared by the management of the Company and have not yet been audited by the external auditor.

Six showrooms were opened during the year on 07.03.2021, 11.04.2021, 09.5.2021, 08.07.2021, 08.12.2021 and 22.12.2021 while two showrooms were closed, one in Jeddah on 01.02.2021 of which a replacement showroom was opened end of the prior year, and another showroom closed in Abu Dhabi on 31.12.2021.