Jarir posts 14% profit growth to SAR 460.1 mln in H1 2020

Jarir Marketing Co. (JMC) reported a net profit after Zakat and tax of SAR 460.1 million for H1 2020, a rise of 14.2% year-on-year (YoY), driven by higher retail sales particularly of smart phones, computers, computer supplies and school supplies, as well as an increase in wholesales.

The company’s H1 results were also backed by a decrease in finance costs.

In Q2 2020, net profit after Zakat and tax grew by 23.2% YoY to SAR 208.4 million, buoyed by higher retail sales particularly of smart phones, computers, computer supplies and school supplies, as well as an increase in wholesales.

Moreover, the bookstore operator reported improved profit margins, along with a decline in finance and operating costs.

When compared to the previous quarter, Jarir’s net profit dropped 17.2%, on a relative decline in profit margins, amid a change in the sales mix in favor of sections with relatively low profitability, compared to the previous quarter, which included the second semester back to school sales.

Jarir also reported higher general and administrative expenses, as well as increased selling and marketing expenses.