Jarir Marketing’s Profits, slightly, Declined by 1%

Jarir Marketing company’s net profit, after zakat and tax declined by 1% to SR992 million in 2021, compared to SR1.003 million the previous year.

The operating profit for the current quarter is SR1.06 billion, down from SR1.1 billion in the same quarter last year, a 4% decline.

On the other hand, the total profit for the current period was SR1.22 billion, down from SR1.32 billion, at the same time the previous year, a decrease of 7%.

Earnings per share for the current quarter are SR8.27, down from SR8.36 for the same quarter last year.

The following factors contributed to the decline in net profit this year compared to the previous year:

Reduced sales in various departments, particularly in the computer, accessories, and video game departments, because of a scarcity of supply.

Despite a 2.3% fall in sales, the total profit fell by 7.5%, since these sales were obtained through a higher number of showrooms than the previous year, implying an increase in the total cost of operating the showrooms, at a time when sales fell by 2.3%.

However, despite a 7.5% drop in the gross profit, the net profit only fell by 1.1% due to:

• Other revenues’ increase, including a capital gain of SR38 million from the sale of some properties, among other things.

• reduced general and administrative expenses, including around SR25 million, in assistance for government projects the previous year.

• Cheap or inexpensive financing.

• Reduced Zakat costs.

The company’s management compiled these expected annual financial results for the year ended December 31, 2021, but they are yet to be evaluated by an external auditor.