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Muhammad Al-Agil, Chairman of Jarir Marketing Co.
Jarir Marketing Co. would have reported a 10% rise in Q3 2021 sales, if it had not been for the challenges to global supply chains and shipping since early 2021, Chairman Muhammad Al-Agil told Al-Arabiya TV.
Jarir’s sales and profit are expected to grow by the end of this year, Al-Agil said, noting that the company has an inventory of most materials, but it faces some challenges to the smart phone stock, as the quantity distributed by producers is much less than last year.
Demand is strong for phones and computers and is much higher than supply with regard to iPhones. On the other hand, demand was subdued for stationary, of which the company has a large inventory.
Al-Agil added that stationary sales improved in the third quarter of the year, on the partial back to school season. The launch of iPhone 13 had a positive impact on the company, despite a low profit margin of 5%-6%, while sales of other sections decreased.
“Jarir’s financials are satisfactory. The school season might change and Jarir’s sales are forecast to grow in the fourth quarter of the year, especially with the division of the academic year into three semesters,” Al-Agil explained.
Moreover, Al-Agil added that the rise in other income was driven by the expiry of an insurance policy, generating an additional non-operating income of SAR 11 million amid lower administrative and selling costs.
Jarir reported a net profit after Zakat and tax of SAR 729.4 million for the first nine months of 2021, compared to SAR 715.3 million a year earlier, Argaam reported.
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