Jarir profits increase to SAR 296.3 million during Q3, by 8.2%

Jarir Marketing Co. recorded a net profit after zakat and tax of SAR 296.3 million during the third quarter, compared to a profit of SAR 273.7 million in the same quarter of last year, an increase of 8.26%. This came after the announcement on Thursday of the interim financial results for the period ending on September 30, 2023 (6 Months).

Gross profit amounted to SAR 384.4 million during the third quarter, compared to SAR 372.3 million in the same quarter of last year, a rate of 3.25%.

Operational profit reached SAR 316.1 million during the third quarter, compared to a profit of SAR 291.3 in the same quarter of last year.

The net profit after zakat and tax amounted to SAR 700 million during the current period, compared to SAR 702.2 million in the same quarter of last year.

Earnings per share amounted to SAR 0.58 in the current period, compared to a profit of SAR 0.59 during the similar period of the previous year.

Reasons for increase in the net profit during the current quarter compared to the same quarter of the last year is:

– Increase of sales at 4.8% due to sales increase of several sections, especially computers and video games sections.

– Increase of other income.

– Decrease of selling and marketing expenses compared to the same quarter of last year which involved increased spend on ads to support sales and promotional offers.

Reasons for increase in the net profit during the current quarter compared to the previous quarter of the current year is:

– Increase of sales at 8.3% due to sales increase of most of the sections, especially school supplies, office supplies and computers sections.

– Relative increase of profit margins due to a favourable change in sales mix towards the relatively high profitable sections, which largely contributed to gross profit increase at 60.4%.

– Increase in other income.

– Decrease of finance cost due to decreased borrowing.

Reasons for decrease in the net profit during the current period compared to the same period of the last year is:

– Despite the increase in sales by 14.4% as a result of sales increase of most sections, especially smartphones, computers and video games, the gross profit witnessed a slight decrease of 0.2% due to discounts on sales prices to promote sales, especially smartphones and computers, and due to the change in the sales mix towards the relatively less profitable sections.

– Despite the slight increase of the gross profit, the net profit slightly declined at 0.3% due the increase of non operating expenses especially finance cost mainly as a result of increased borrowing, especially in the second quarter of the current year.

These estimated financial results for the period ended September 30, 2023 are prepared by the management of the Company and have not yet been reviewed by the external auditor.

– The nine months period of the current year and the similar period of the last year showed a decrease in the comprehensive income compared to the net profit mainly due to currency differences losses in the first quarter of the current year and last year related to the subsidiary company in Egypt as a result of the Egyptian authorities’ decision to devalue the Egyptian pound against foreign currencies, including the Saudi riyal, which started in March 2022.

– Earnings per share for all presented periods are calculated based on the number of shares of the company amounting to 1,200 million shares after splitting each share into ten shares as decided by the extraordinary general assembly held on May 30, 2023.

– Three new showrooms were opened during this period, on 24.2.2023 in the University City area in the Emirate of Sharjah in the United Arab Emirates, on 10.4.2023 in the Avenues Mall in Al-Rai area in Kuwait, and on 11.8.2023 in Asala district at Haramain road in Jeddah governorate.

– The showroom located in Al-Rashid Mall in Al-Khobar was closed as of 24.2.2023, as it was replaced by another showroom in the same complex with a larger area which was opened on 16.4.2023.