Jarir’s profits increased to SAR 973 mln in 2023 by 0.33%

Jarir Marketing Company revealed today, January 30 2024, that net profit during the year ending on December 31, 2023 increased to SAR 973 mln, compared to SAR 969.8 SAR last year, by 0.33%. This came after today’s announcement of the estimated annual financial results ending on December 31, 2023.

Operating profit reached SAR 1.04 bn during the year ending December 31, 2023, compared to SAR 1.01 bn in the previous year, an increase of 2.6%.

Revenues increased during the year 2023 to SAR 10.5 bn compared to SAR 9.3 bn last year, by 12.8%.

Earnings per share in the current year reached SAR 0.81, compared to SAR 0.81 last year.

The reason for the increase in revenues during this year compared to the previous year is due to:

Total sales increased by 12.8% due to the increase in sales of many departments, led by smartphones, video games, and computers.

The reason for the increase in net profit during this year compared to the previous year is:

Despite the increase in sales by 12.8%, the gross profit witnessed a slight decrease of less than 1% due to the relative decline in profit margins for several sections, especially smartphones, and due to the change in the sales mix towards the relatively less profitable sections.

Moreover, despite this slight decrease in gross profit, operating profit increased by 2.6% due to a decrease in selling and marketing expenses and the increase in other income. However, despite this increase in operating profit by 2.6%, net profit increased by only 0.3% due to the increase in finance costs and due to the increase in zakat expense compared to last year which witnessed reversal of zakat provision of SAR 17 mln following the zakat Appeal Committee Ruling in favor of the company related to years 2011 to 2015.

Additional Information:

The difference between the comprehensive income and the net profit for the current year includes exchange losses of SAR 12 mln (SAR 29 mln for the last year) related to the subsidiary in Egypt as a result of the Egyptian authorities decision to devalue the Egyptian Pound currency against the foreign currencies including Saudi Riyal which started in March 2022.

Earnings per share for the two years presented 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 February 24, 2023 in the University City area in the Emirate of Sharjah in the United Arab Emirates, on April 10, 2023 in the Avenues Mall in Al-Rai area in Kuwait, and on August 11, 2023 in Asala district at Haramain road in Jeddah governorate. The showroom located in Al-Rashid Mall in Al-Khobar was closed as of February 24, 2023, as it was replaced by another showroom in the same complex with a larger area which was opened on April 16, 2023. The company also closed its showroom located in Dalma Mall in Abu Dhabi, United Arab Emirates, as of December 1, 2023.