BinDawood Holding H1 2023 profit up 12% to SAR 120.8 mln; Q2 at SAR 69.3 mln

BinDawood Holding Co. reported a 12% rise in H1 2023 net profit to SAR 120.8 million from SAR 107.8 million in H1 2022. 

The first-half revenue rose by 16.6% year-on-year (YoY) to SAR 2.79 billion. The growth is backed by BinDawood and Danube stores. BinDawood stores recognized sales of SAR 912.1 million in H1 2023, compared to SAR 779.8 million in H1 2022, a jump of 17%. This came on the back of a sharp increase in the number of foreign pilgrims for Hajj and during Ramadan, which resulted in enhanced performance of the company’s Makkah and Madinah stores.   

Danube stores posted sales of SAR 1.74 billion in H1 2023, compared to SAR 1.61 billion in the prior-year period. Continuous marketing campaigns and good pre-Ramadan season were the catalysts for this growth. In addition, the loyalty program played a positive role in enhancing growth under both brands.  

Gross profit rose to SAR 868.7 million, or 31.1% of sales in H1 2023, sending the gross profit margin higher.    

The increase in net profit reflects the cumulative impact of the rise in sales and gross profit, which was partly offset by higher operating expenses (OpEx).   

In Q2 2023, net profit jumped 64% to SAR 69.3 million from SAR 42.3 million in the year-earlier period.    

The three-month revenue jumped 15.6% YoY, buoyed by a strong Hajj season and marketing campaigns across both brands, as well as the market intelligence gathered from the loyalty program. The gross profit rose to SAR 452 million from SAR 378.1 million in Q2 2022. By contrast, OpEx increased to SAR 364.3 million from SAR 315.3 million in Q2 2022 as the company opened a new store in Jeddah and expanded the total space of another one in Taiba, Madinah. 

The second-quarter net earnings increased by 34.6% from SAR 51.49 million in Q1 2023, thanks to 2.2% growth in revenue on a sequential basis. 

Shareholders’ equity, after minority interest, declined to SAR 1.36 billion as of June 30, 2023, from SAR 1.44 billion a year earlier.   

View more financial results