Jarir’s profits increased by 8.2% to SR296.3 million during Q3‎

Jarir Marketing Company recorded a net profit after zakat and tax during the third quarter of 296.3 million riyals, compared to 273.7 million riyals in the same quarter of last year, at a rate of 8.2%. This came after today’s announcement of the preliminary financial results for the period ending on September 30, 2023 (9 months).

Operating profit reached 316.1 million riyals in the third quarter, compared to 291.3 million riyals in the same quarter of the previous year, an increase of 8.5%.

Net profit after zakat and tax during the 9-month period amounted to 670 million riyals, compared to 702.2 million riyals in the same period of the previous year, a decrease of 0.33%.

The total equity of shareholders (excluding minority rights) reached one billion riyals in the current period, compared to one riyal in the same period last year, an increase of %.

Earnings per share in the current period reached 0.58 riyals, compared to 059 riyals in the same period last year.

The company confirmed that the reason for the increase in profits is due to:

– Sales increased by 4.8% as a result of increased sales of many departments, especially the computer and video games departments.

– Increase in other revenues

– Decrease in sales and marketing expenses compared to the same quarter of the previous year

The reason for the rise is:

– Sales increased by 8.3% as a result of the increase in sales of most departments, especially the school and office supplies departments and the computer department.

– A relative increase in the profitability margin due to the positive change in the sales mix compared to the previous quarter, as the current quarter included a greater weight for sales of departments with relatively high profitability, which had the greatest impact on the significant increase in the total profit, which rose by 60.4%. ‎

– Increase in other revenues

– Decrease in the cost of financing as a result of reduced borrowing

The company stated that despite the increase in sales by 14.4% as a result of the increase in sales of most departments, especially the smart phone, computer and video game departments, the total profit witnessed only a slight increase of 0.2% due to discounts on selling prices to stimulate sales, especially smart phones and computers, and because of the change. In the sales mix that included a greater weight for the relatively less profitable divisions

She added that despite this increase in total profit, net profit decreased by 0.3% due to an increase in non-operating expenses, especially the financing cost, which is mainly due to an increase in borrowing, especially in the second quarter of the current year.

– The nine-month period of the current year and the similar period of last year witnessed a decrease in comprehensive income below net profit, mainly due to losses in currency differences, especially 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 reduce The value of the Egyptian pound against foreign currencies, including the Saudi riyal, which began in March 2022.

The company revealed earnings per share for all periods presented, calculated on the basis of the number of company shares amounting to 1,200 million shares after dividing one share into ten shares based on the decision of the extraordinary assembly held on May 30, 2023 AD.

She indicated that three new showrooms were opened during this period on 2/24/2023 AD in the University City area in the Emirate of Sharjah in the United Arab Emirates, and on 4/10/2023 AD in the Avenues Mall in Al-Rai area in the State of Kuwait, and on 8/11/2023 AD. In Al-Asala neighborhood on Al-Haramain Road in Jeddah Governorate

The showroom located in Al-Rashid Mall in Al-Khobar was also closed, as of 2/24/2023 AD, and was replaced by another showroom in the same complex with a larger area that was opened on 4/16/2023 AD.