Jarir’s H1 2022 net profit dips 6% to SAR 428.5 mln; Q2 at SAR 177.2 mln

Jarir Marketing Co. reported a net profit after Zakat and tax of SAR 428.5 million in the first six months of 2022, a decline of 6%, compared to SAR 456.9 million in a year earlier period.

The earnings slump was due to lower sales of computers, computer supplies, smartphones and related accessories. Accordingly, total sales fell by 5.5% year-on-year (YoY).

The company’s Q2 2022 net profit fell 6% year-on-year (YoY) to SAR 177.2 million on a 5.1% decline in gross profit. Gross profit margins were impacted by discounts given to boost sales, primarily smartphones.

Despite higher selling and marketing expenses, the impact on net profit was largely mitigated by a gain of SAR 10 million recognized from the sale of the company's property in Raka district in Khobar.

On a sequential basis, net profit fell 29.5% from SAR 251.31 million. The lower profit was attributed to a 5.5% YoY drop in total sales, as sales declined in most segments, particularly smartphones and computer supplies. Additionally, selling and marketing expenses increased as a result of increased spending on advertisements to support sales. However, the net profit resulting from selling Jarir’s property in Al-Khobar largely mitigated this impact.

Other income in Q4 2021 included (among other factors) a capital gain of SAR 38 million on disposal of a parcel of land.

Total shareholders’ equity, excluding minority interest, stood at SAR 1.704 billion by the end of H1 2022, compared to SAR 1.648 billion a year earlier.

Jarir also noted that these estimated financial results for the current period were prepared by the management and have not yet been reviewed by the external auditor.

Comprehensive income in the current quarter, according to Jarir, is less than net profit by around SAR 13 million. This was mainly due to foreign exchange losses related to the subsidiary in Egypt as a result of the Egyptian pound’s devaluation against foreign currencies including the Saudi Riyal.

Jarir also pointed out that a new showroom was opened during the three-month period, while another one was closed in Jeddah.

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