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Ahmad BinDawood, CEO of BinDawood Holding Co.
BinDawood Holding Co. faced a tough start to the year, as the local grocery retail market continues to remain subdued, said CEO Ahmad BinDawood.
In a statement on Q1 2021 financial statements, the CEO said although some green shoots of recovery were seen in the first three months, the company expects sales to return to the pre-COVID-19 level in H2 2021.
He added that Q1 2021 profit margin compared with the previous quarter was driven by higher sales across all company stores.
Despite the steep decline in the annual performance, it is important to consider the one-off gain in sales from pantry buying in March 2020 due to the national lockdown, the CEO said.
The company's stores in Makkah and Madinah, as well as the surrounding areas, were fully operational in the first quarter of 2020, while the pandemic restricted their activities in the first quarter of 2021, BinDawood noted.
He expected the gradual return of pilgrims, easing restrictions and the launch of promotions and festivals to restart in late May.
In addition, he forecast a reduction in costs due to the pandemic and improvement in the performance of stores in Makkah, Madinah and surrounding areas, stating the company is “cautiously optimistic” that sales and profits for 2021 will start to converge with those of 2020 during the second half of the year.
The company is proceeding with its plan to open five to six stores annually, in addition to foraying into Bahrain.
The Tadawul-listed firm reported a 50.8% decline in net profit after Zakat and tax to SAR 62.1 million in Q1 2021, compared to SAR 126.3 million in the year-earlier period, Argaam reported.
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