Riyadh, Saudi Arabia — Jarir Marketing Company’s net profit declined marginally to SAR 699.9 million ($186 million) in the first nine months of 2023, from SAR 702.2 million in the same period last year.
In a Tadawul disclosure, Jarir said that despite an increase in sales by 14.4 percent, especially smartphones, computers and video games, the gross profit witnessed a slight decrease of 0.2 percent 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.
The decrease was also due to an increase in non-operating expenses especially finance cost mainly as a result of increased borrowing, especially in the second quarter of the current year.
The third-quarter net profit rose by 8 percent to SAR 296.3 million, from SAR 273.72 million in Q3 2022, driven by a 4.8 percent rise YoY in sales from most sections, especially computers and video games, as well as better other income.
Selling and marketing expenses decreased on a YoY basis.
Jarir’s net earnings also surged 90.2 percent from SAR 155.78 million in Q2 2023, as sales grew by 8.3 percent quarter-on-quarter driven by most sections, mainly the schools and office supplies, and computers. The company reported a relative increase in profit margins due to a favorable change in the sales mix towards the relatively high profitable sections, which largely contributed to a gross profit rise of 60.4 percent.
Total shareholders’ equity, no minority interest, stood at SAR 1.79 billion as of Sept. 30, 2023, down from SAR 1.80 billion a year earlier.
