BinDawood Holding 2022 profit drops 51% to SAR 118.7 mln; Q4 at SAR 59.1 mln

BinDawood Holding Co. reported a net profit of SAR 118.7 million after minority interest for 2022, a 51% slump from SAR 240.6 million in the previous year. 

Revenue reached SAR 4.89 million in 2022, compared with SAR 4.38 million in 2021, due to the gradual return of pilgrims and the resumption of customer engagement activities during Hajj, Umrah and different festivals during the year. Non-retail segment also contributed to the overall sales with revenue of SAR 117 million.

The full-year profit decline was primarily due to higher inflation costs that were partially absorbed by the company to remain competitive and increase customer footfall. However, the successful implementation of the loyalty program enabled the firm to enhance its product offerings.

Operating expenses increased to SAR 1.29 billion in 2022, compared with SAR 1.17 billion in 2021. This can be attributed to expenses on new store openings, investments made in technology and human capital as well as cost of acquisitions made during the year. However, this impact was partially mitigated by the positive impact of employees-related expenses reduction.

The fourth-quarter net profit soared to SAR 59.1 million from SAR 13.2 million a year before. 

Compared to Q3 2022, the company turned profitable from a loss of SAR 48.26 million.

Shareholders’ equity, after minority interest, amounted to SAR 1.34 billion at the end of 2022, from SAR 1.41 billion a year earlier.

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