BinDawood Holding profit grows to SAR 155.7 mln in 9M 2023; Q3 at SAR 34.9 mln

BinDawood Holding Co. reported an over twofold increase in net profit to SAR 155.7 million in the first nine months of 2023 from SAR 59.5 million a year earlier. 

The retail chain said that the nine-month performance was driven by growth in sales, primarily due to a full-fledged Hajj and Umrah seasons. Customized marketing campaigns and loyalty programs also favorably impacted sales performance.

The company’s both brands recorded impressive growth in revenues. BinDawood stores witnessed aggregate sales of SAR 1.33 billion in the current period, reflecting an increase of 15.4% year-on-year (YoY).

Danube stores’ sales stood at SAR 2.62 billion, compared to SAR 2.38 billion in the first nine months of 2022, an increase of 10%. The remaining rise was attributed to the full period impact of revenue contribution of the subsidiaries of Future Retail for Information Technology (FTR) acquired in July 2022.

On the other hand, operating expenses (OpEx) rose to SAR 1.07 billion from SAR 964.6 million in the first nine months of 2022.

The company cited the full impact of new stores opened in Q4 2022, expansion of the existing store in Madinah, and costs associated with new store openings in 2023.

Further, BinDawood Holding pointed to the full period impact of OpEx incurred by the two subsidiaries of FTR acquired in July 2022. The company reported an increase of SAR 12 million in the amortization of intangible assets.

In Q3 2023, the company swung to a net profit of SAR 34.9 million against a net loss of SAR 48.2 million in Q3 2022, thanks to a 13.8% YoY rise in sales. Gross profit reached SAR 420.9 million in the three-month period, accounting for 31% of sales, compared to SAR 307.2 million (26% of sales). 

The company’s net profit fell by 48.3% from SAR 65.83 million in Q2 2023 on a 3.74% drop in revenue quarter-on-quarter (QoQ) to SAR 1.35 billion.

Gross profit dropped to SAR 420.9 million in the three-month period, accounting for 31% of sales, compared to SAR 452 million (32% of sales).

Total shareholders’ equity, no minority interest, stood at SAR 1.38 billion as of Sept. 30, 2023, up from SAR 1.28 billion in the prior-year period.

View More Financial Results