BinDawood Holding’s performance likely to improve given investment, forward planning: CEO

Ahmad Abdulrazzaq BinDawood, CEO

BinDawood Holding Co. will likely report improved performance in the light of the company’s investment and forward planning, CEO Ahmad Abdulrazzaq BinDawood said in a statement. 

“Our gross margin is consistent in 2021 even without the full benefit of the Makkah and Madinah stores, which are some of the most productive stores in the company’s portfolio,” BinDawood added.

BinDawood pointed out that 2021 will never be a replica of 2020, which was an exceptional year for the industry, driven by pandemic-induced pantry loading and the increase in the value-added tax (VAT).

He projects a more settled period after two years of disruption, providing that “religious travelers return and if we are allowed to undertake promotional campaigns as before.”

The company opened four new stores in 2021, and still maintains a target to reach 100 stores by 2024. It also invested in inventory technology, distribution and talent.

BinDawood confirmed that the company is committed to invest up to SAR 160 million over a two-year period to cater to a paradigm shift in grocery shopping and the need to strengthen the omnichannel approach.

BinDawood Holding reported a net profit after Zakat and tax of SAR 240.6 million for 2021, a 46% slump from SAR 447.7 million in the previous year, due to a decline in sales and lower gross profit.

The fourth-quarter net profit after Zakat and tax plunged 77% year-on-year to SAR 13.2 million, Argaam earlier reported.