BinDawood Holding profit soars to SAR 275.1M in 2023; Q4 at SAR 119.4M

BinDawood Holding Co. reported a net profit of SAR 275.1 million for 2023, more than double from SAR 124.7 million in the previous year.

Revenue grew 14.4% year-on-year (YoY) to SAR 5.6 billion, driven by exceptional sales from BinDawood and Danube stores. The full-year impact of subsidiaries acquired in July 2022 also contributed to the revenue rise.

Gross profit margin improved to 32.3% from 29.3% in 2022 and gross profit increased to SAR 1.8 billion in 2023 from SAR 1.43 billion, backed by enhanced customer engagement, better product mix, strategic supplier negotiations, cost management, and a focus on quality output.

Meanwhile, operating expenses (OpEx) rose to SAR 1.46 billion in 2023 from SAR 1.29 billion a year ago. As a percentage of revenue, OpEx reduced to 26.1% in 2023 from 26.4% in 2022 despite cost incurred to enhance the dark store mechanism, full period impact of new stores, amortization of intangible assets incurred, full-period operating cost impact of operating subsidiaries under Future Retail for Information Technology acquired in 2022, and, merger and acquisitions related consultancy services.

The fourth-quarter net profit jumped 83.1% YoY to SAR 119.4 million.

The company’s three-month earnings spiked from SAR 34.91 million in Q3 2023.

Shareholders’ equity, after minority interest, amounted to SAR 1.39 billion at the end of 2023, from SAR 1.35 billion a year earlier.

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