BinDawood Holding 9M 2022 profit tumbles 74% to SAR 59.8 mln, Q3 loss at SAR 48 mln

BinDawood Holding Co. reported a 74% fall in net profit after Zakat and tax to SAR 59.8 million in the first nine months of 2022, from SAR 227.4 million in the year-earlier period.

Gross profit amounted to SAR 1.069 billion in 9M 2022, down from SAR 1.170 billion in the same period last year. Operating expenses (OPEX) increased to SAR 964.6 million, from SAR 877.1 million in 9M 2021.

This came despite a rise of 7.6% in revenue to SAR 3.578 billion, from SAR 3.325 billion for the same period last year. The increase in sales revenues was mainly driven by BinDawood stores’ sales, which were 27.6% higher year-on-year (YoY) in the first nine months of 2022.

The return of the pilgrims, spurred by the lifting of the travel ban and the return of promotions and marketing activities during Hajj, Umrah and Back-to-School seasons helped lift sales across all BinDawood stores. Danube sales were slower mainly due to a slowdown in sales related to corporate customers.

In Q3 2022, the company swung to a net loss after Zakat and tax of SAR 48 million, against a net profit of SAR 70.24 million in Q3 2021.

Gross profit fell to SAR 307.2 million, compared to SAR 397.3 million in Q3 2021. OPEX increased to SAR 336.5 million, from SAR 304.1 million in the prior-year period.

The third-quarter losses reflect the cumulative impact of lower gross margin and higher operating expenses.

The grocery retailer turned to losses from a net profit of SAR 42.34 million in Q2 2022, as revenue decreased by 3.1% on a sequential basis.

BinDawood Holding also reported lower gross profit and a 6.7% increase in OPEX to SAR 336.5 million.  

Total shareholders’ equity, no minority interest, decreased to SAR 1.286 billion as of Sept. 30, 2022, from SAR 1.397 billion a year earlier.

View More Financial Results