BinDawood Holding H1 2022 profit down 31% to SAR 107.8 mln, Q2 at SAR 42.3 mln

BinDawood Holding Co. reported a net profit after Zakat and tax of SAR 107.8 million for H1 2022, a drop of 31% from SAR 157.1 million in the year-earlier period.

Gross profit declined by SAR 11 million year-on-year (YoY), due to the impact of marketing campaigns and loyalty program activities.

Operating expenses (OPEX) increased to SAR 628.1 million in H1 2022, from SAR 573 million in H1 2021. The increase is directly related to the fixed and variable cost element of higher OPEX, due to the opening of new stores and the costs related to the acquisition of IATC and Ykone by Future Retail for Information Technology Co. (FTR). The company also recorded an increase in general and administrative salaries to attract and retain the best human talent.

On the other hand, revenue grew 6.6% YoY to SAR 2.396 billion in H1 2022, compared to SAR 2.247.2 billion a year earlier.  

Sales in the six-month period were mainly driven by BinDawood stores, as well as the holy month of Ramadan and back-to-school seasons. 

In Q2 2022, the company’s net profit after Zakat and tax dipped 55% to SAR 42.3 million, from SAR 94.9 million in Q2 2021 on lower gross profit margins. Gross profit declined by 5.3% YoY. OPEX increased to SAR 315.3 million, from SAR 284.4 million in Q2 2021.

The second-quarter drop came despite an 8.7% rise in revenue.

The Saudi grocer’s net profit dropped 35.3% from SAR 65.46 million in Q1 2022 on higher OPEX and lower gross profit margins.

Total shareholders’ equity, after minority interest, decreased to SAR 1.444 billion by the end of the six-month period, from SAR 1.470 billion a year earlier.

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