BinDawood Holding logs strong Q1 revenue on store turnout, eyes acquisitions: CEO

Ahmad BinDawood, CEO of BinDawood Holding 

BinDawood Holding Co.'s revenue increased by 6.6% year-on-year (YoY) in the first quarter of 2024, as store turnout grew by 7.5% YoY during the three-month period. This reflected the company's success in developing its customer experience, while also diversifying its products and promotions, CEO Ahmad BinDawood told Argaam in an interview.

The company uses the artificial intelligence (AI)-supported loyalty program to analyze customer data and behavior to offer the best experiences for its customers. As much as 80% of sales are recorded via the loyalty program, which BinDawood Holding seeks to boost in the near future, the CEO said.

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BinDawood stores reported sales of SAR 484.0 million in Q1 2024, a YoY rise of 8.5% while up 18.2% compared to the fourth quarter of 2023.

Meanwhile, sales of Danube stores climbed by 7.1% YoY and 2.5% quarter-on-quarter (QoQ) to SAR 934.9 million in Q1 2024.

This improved first-quarter performance, according to the top executive, was driven by the great preparations during the period preceding the holy month of Ramadan and the continued success of the loyalty program. However, the aforementioned increases were partially offset by the QoQ top line drop in Q1 2024, which is commonly considered the company’s favorite quarter.

Branches in the Al Haramain area in Makkah and Madinah demonstrated favorable results in Q1 2024, thanks to the well-crafted planning for these seasons through various products offered to customers, he added.

One Danube supermarket was opened in Abraj Al-Bait, Makkah, during the first three months of 2024, while another Express store was inaugurated in Makkah’s Quba Mosque complex. In addition, a supermarket was opened in Al-Hamra, Jeddah, the CEO stated, confirming that five other stores are scheduled to open this year.

Meanwhile, 20 dark store branches began operations, with an eye to bring the total count to 25 by the end of 2024, BinDawood pointed out.

BinDawood and Danube stores rank third in Saudi Arabia in terms of market share, the top executive said, adding that the company is studying potential acquisition opportunities, with the relevant details to be announced in due course.

Danube Dash and BinDawood Dash, the new identities in the convenience store branches, are part of the company's expansion strategy that aims to open a series of branches in various cities and vital areas across the Kingdom.

The new identity has a variety of quick and effective products and services to meet customer needs as quickly as possible. Its area ranges from 150 to 800 square meters (sqm).

BinDawood Holding is developing some new branches to expand its geographical footprint and attract more customers. In addition, it is working on rolling out more dark stores to serve online sales.

BinDawood Holding runs a 20,000-sqm distribution center designated for preparing orders to support the infrastructure for expansion of Danube Dash and BinDawood Dash, the CEO said. He added that the board intends to invest in complementary activities in the field of distribution, data and Fintech.

Elsewhere, the top executive expects BinDawood Holding to post positive results over the coming period, through improving customer experience, diversifying products, and controlling costs.

The Tadawul-listed firm reported net profit growth of 11% to SAR 57.2 million (after minority interest) in Q1 2024, from SAR 51.5 million in the previous year, according to data available with Argaam.