‎“Jarir Marketing” profits down slightly, to SR969.8 mln during ‎‎2022‎

The net profit after zakat and tax decreased for Jarir Marketing Company during the year 2022 AD to 969.8 million riyals, compared to 992 million riyals in the year before last, at a rate of 2.2%. This came after today’s announcement of the annual financial results ending on 12-31-2022.

The operational profit amounted to 1.02 billion riyals in the current year, compared to 1.06 billion riyals in the year before last, a decline of 4%.

As for gross profit, it amounted to 1.28 billion riyals in the current year, compared to 1.22 billion riyals in the year before last, an increase of 5%.

Earnings per share in the current year reached 8.08 riyals, compared to 8.27 riyals in the year before last.

The reason for the (decrease) in the net profit during this year compared to the previous year is due to:

Despite the increase in sales by 3.3% as a result of the increase in sales of most departments, especially the departments of school and office supplies and smart phones, and despite the increase in gross profit by 4.7% as a result of the increase in sales and the positive change in the sales mix, the net profit decreased by 2.2% due to this Mainly to:

– The decrease in other revenues, which included last year a capital gain of 38 million riyals from the sale of a plot of land and an insurance compensation of 11 million riyals.

– Increase in selling and marketing expenses as a result of increased spending on advertising to support sales and promotions

It was also stated in the external auditor’s report that these estimated annual financial results for the year ending on December 31, 2022 were prepared by the company’s management and have not yet been reviewed by its external auditor.

The company clarified that the difference between comprehensive income and net profit for the current year includes currency differences losses of 29 million riyals related to the subsidiary in Egypt as a result of the Egyptian authorities’ decision to devalue the Egyptian pound against foreign currencies, including the Saudi riyal, which began in March 2022. The amount of 15.7 million riyals also includes the profits of re-measuring the provision for end-of-service benefits

In the last quarter of the current year, a provision for zakat was refunded in the amount of 17 million riyals after the issuance of the appeal decision in favor of the company in most of the items that were in dispute with the Zakat, Tax and Customs Authority for the years 2011 AD to 2015 AD, especially allowing the deduction of dividends in excess of The opening balance of retained earnings. The company has received the amended zakat assessments for these years according to the appeal decision.

Two new exhibitions were opened during this period, on 21/2/2022 AD and 8/9/2022 AD, in Jeddah and the city of Manama, Bahrain, respectively, and an exhibition was opened in Medina on 12/5/2022 AD as an alternative to its exhibition there. An exhibition in the city of Jeddah was also closed on 12/5/2022 AD as part of the authorities’ plan to remove slums in Jeddah Governorate.