Bin Dawood Holding Profits Decrease to 241 mln at End of 2021, by 46%

The net profit after zakat and tax for Bin Dawood Holding Company decreased to SR241 million during the year 2021, compared to SR448 million during the year before last, at a rate of 46%.

This came after the announcement today of the annual financial results ending on 31.12.2021 (12 months).

The operational profit during the current period amounted to SR2755 million, compared to SR515 million during the same period of the previous year, down 47%.

The gross profit during the current period, it amounted to SR1.43 billion, compared to SR1.67 billion during the same period last year, a decrease of 14%.

Profits per share during the current period amounted to SR2.1, compared to SR3.92 during the same period last year.

BinDawood Holding revenues for the full year 2021 amounted to SR 4,382.2 million versus SR5,156.5 in 2020.

Danube and BinDawood stores sales decline were primarily driven by lower H1 sales as compared to the same period in 2020, which benefited enormously from pantry-buying in response to the pandemic lockdowns and the lead-up to the VAT hike. In addition, the Company’s sales performance continued to be impacted by pandemic travel restrictions leading to a lack of pilgrim inflow during Umrah, Hajj and Ramadan seasons and store restrictions in the Makkah and Madinah area, coupled with the lack of promotional campaigns such as Back to School, year-end and food festivals.

Gross profit for the full year 2021 is SR1,438.9 million versus SR1,671.9 million in 2020 and despite the drop in absolute terms, the Company posted a higher gross profit margin of 32.8% in 2021 as compared to 32.4% in 2020. The increase was due to stringent and efficient wastage and shrinkage controls and improvement in pricing and procurement efficiency.

Operational expenses for the full year 2021 were broadly in line with 2020 despite opening 4 additional stores. In 2021, the Company had no Covid-19 related relief support, whereas, in 2020, SR15.5 million was secured in the form of bank fee waivers and subsidized electricity charges.

Net profit for the full year 2021 is S 240.6 million versus SR447.7 million in 2020

Certain comparative figures have been reclassified to conform to the current period’s presentation. These reclassifications have no impact on the net profit, retained earnings and financial position of the Company, as at 31 December 2021.

Additional Information

Significant changes in the financial position as at 31st December 2021 were noted as follows:

1. Non-current assets decreased by 9.7% in FY21 driven mainly by the depreciation of assets and amortization of Right-of-use assets.
2. Current assets increased by 10.0% in FY21 due to an increase in Trade receivables and Cash and cash equivalents.
3. Current liabilities were reduced marginally by 5.4% in FY21 due to a reduction in Trade payables.
4. Non-current liabilities reduced by 7.5% in FY21 due to lease modifications and COVID-related rental concessions.
5. Shareholders’ equity increased by 7.5% driven by an increase in retained earnings.