Jarir posts SAR 390.4M profit in H1 2024; Q2 at SAR 171.1M

11/07/2024 Argaam Exclusive

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Jarir Marketing Co. (JMC) reported a net profit of SAR 390.4 million for H1 2024, a decline of 3.3% from SAR 403.5 million a year earlier.



Financials (M)

Item 6m 2023 6m 2024 Change‬
Revenues 5,153.38 5,299.80 2.8 %
Gross Income 563.31 557.10 (1.1 %)
Operating Income 439.30 426.50 (2.9 %)
Net Income 403.53 390.40 (3.3 %)
Average Shares 1,200.00 1,200.00 -
EPS (Riyals) 0.34 0.33 (3.3 %)

The decline was attributed to a 1.1% year-on-year (YoY) decrease in gross profits, mainly due to a shift in the sales mix towards the relatively less profitable sections.

 

Selling and marketing costs, as well as general and administrative expenses also increased during the six-month period.

 

On the other hand, revenue increased thanks to higher sales of some sections, mainly smart phones, video games and computers. Total sales grew by 2.8% YoY.



Current Quarter Comparison (M)

Compared With The
Item Q2 2023 Q2 2024 Change‬
Revenues 2,435.73 2,650.00 8.8 %
Gross Income 239.57 262.50 9.6 %
Operating Income 174.80 189.00 8.1 %
Net Income 155.78 171.10 9.8 %
Average Shares 1,200.00 1,200.00 -
EPS (Riyals) 0.13 0.14 9.8 %

The second-quarter net earnings increased by 10% to SAR 171.1 million from SAR 155.7 million in Q2 2023.

 

This was driven by higher sales of several sections, led by smartphones, video games, and computers sections, which led to an increase in total sales by 8.8%

 

Gross margins witnessed relative stability on sales as a whole, with direct operating costs remaining stable despite the growth in sales. This led to an increase in gross profit at a higher percentage than sales.

 

However, selling, marketing, general and administrative expenses increased compared with a year earlier.

 

Jarir’s net earnings dropped by 22% from SAR 219.3 million in Q1 2024.

 

Shareholders’ equity, no minority interest, decreased to SAR 1.65 billion as of June 30, 2024, from SAR 1.68 billion a year ago.



Financial results (Million)

Period Revenues Change Gross Income Change Net Income Change EPS(Riyal)
Q1 2015 1,909.51 36.5 % 283.51 20.6 % 247.02 22.7 % 0.21
Q2 2015 1,405.76 9.0 % 191.37 10.2 % 154.86 14.5 % 0.13
Q3 2015 1,536.06 7.7 % 253.41 6.8 % 218.50 7.6 % 0.18
Q4 2015 1,524.05 (3.8 %) 243.74 1.4 % 208.09 1.1 % 0.17
Q1 2016 1,417.43 (25.8 %) 214.77 (24.2 %) 174.96 (29.2 %) 0.15
Q2 2016 1,390.74 (1.1 %) 162.76 (15.0 %) 126.48 (18.3 %) 0.11
Q3 2016 1,520.93 (1.0 %) 252.93 (0.2 %) 217.92 (0.3 %) 0.18
Q4 2016 1,793.46 17.7 % 244.80 0.4 % 215.32 3.5 % 0.18
Q1 2017 1,704.95 20.3 % 247.38 15.2 % 221.44 26.6 % 0.18
Q2 2017 1,584.80 14.0 % 192.72 18.4 % 147.76 16.8 % 0.12
Q3 2017 1,651.79 8.6 % 290.72 14.9 % 246.53 13.1 % 0.21
Q4 2017 2,000.39 11.5 % 306.42 25.2 % 251.93 17.0 % 0.21
Q1 2018 1,599.42 (6.2 %) 242.67 (1.9 %) 219.10 (1.1 %) 0.18
Q2 2018 1,693.32 6.8 % 212.53 10.3 % 162.59 10.0 % 0.14
Q3 2018 1,932.08 17.0 % 338.56 16.5 % 288.00 16.8 % 0.24
Q4 2018 2,136.90 6.8 % 320.07 4.5 % 290.31 15.2 % 0.24
Q1 2019 1,886.64 18.0 % 302.14 24.5 % 233.69 6.7 % 0.19
Q2 2019 1,892.58 11.8 % 233.90 10.1 % 169.13 4.0 % 0.14
Q3 2019 2,251.23 16.5 % 389.14 14.9 % 304.97 5.9 % 0.25
Q4 2019 2,394.06 12.0 % 348.00 8.7 % 276.94 (4.6 %) 0.23
Q1 2020 2,340.22 24.0 % 327.46 8.4 % 251.69 7.7 % 0.21
Q2 2020 2,373.92 25.4 % 303.74 29.9 % 208.39 23.2 % 0.17
Q3 2020 2,037.85 (9.5 %) 334.46 (14.1 %) 255.24 (16.3 %) 0.21
Q4 2020 2,553.83 6.7 % 362.96 4.3 % 287.67 3.9 % 0.24
Q1 2021 2,530.39 8.1 % 337.57 3.1 % 267.64 6.3 % 0.22
Q2 2021 2,015.28 (15.1 %) 262.03 (13.7 %) 189.24 (9.2 %) 0.16
Q3 2021 2,224.49 9.2 % 344.09 2.9 % 272.50 6.8 % 0.23
Q4 2021 2,318.11 (9.2 %) 285.64 (21.3 %) 262.48 (8.8 %) 0.22
Q1 2022 2,286.89 (9.6 %) 325.05 (3.7 %) 251.31 (6.1 %) 0.21
Q2 2022 2,010.48 (0.2 %) 248.59 (5.1 %) 177.16 (6.4 %) 0.15
Q3 2022 2,517.03 13.2 % 372.26 8.2 % 273.72 0.4 % 0.23
Q4 2022 2,577.29 11.2 % 341.48 19.5 % 267.57 1.9 % 0.22
Q1 2023 2,717.65 18.8 % 323.74 (0.4 %) 247.75 (1.4 %) 0.21
Q2 2023 2,435.73 21.2 % 239.57 (3.6 %) 155.78 (12.1 %) 0.13
Q3 2023 2,639.04 4.8 % 384.41 3.3 % 296.33 8.3 % 0.25
Q4 2023 2,802.50 8.7 % 328.21 (3.9 %) 273.19 2.1 % 0.23
Q1 2024 2,649.85 (2.5 %) 294.65 (9.0 %) 219.32 (11.5 %) 0.18
Q2 2024 2,650.00 8.8 % 262.50 9.6 % 171.10 9.8 % 0.14

Profitability

Period Gross Margin OIBDA Margin Net Margin Before Unusual Items
Q1 2015 15.06 % 12.79 % 12.74 %
Q2 2015 15.06 % 12.84 % 12.82 %
Q3 2015 15.05 % 12.90 % 12.84 %
Q4 2015 15.25 % 13.19 % 12.99 %
Q1 2016 15.35 % 13.10 % 12.86 %
Q2 2016 14.91 % 12.59 % 12.41 %
Q3 2016 14.94 % 12.65 % 12.50 %
Q4 2016 14.30 % 12.26 % 12.07 %
Q1 2017 14.16 % 12.40 % 12.25 %
Q2 2017 14.20 % 12.33 % 12.10 %
Q3 2017 14.49 % 12.50 % 12.23 %
Q4 2017 14.94 % 12.73 % 12.39 %
Q1 2018 15.10 % 12.90 % 12.55 %
Q2 2018 15.15 % 13.07 % 12.67 %
Q3 2018 15.23 % 13.18 % 12.76 %
Q4 2018 15.13 % 13.18 % 13.04 %
Q1 2019 15.34 % 13.45 % 12.74 %
Q2 2019 15.22 % 13.68 % 12.50 %
Q3 2019 15.25 % 13.76 % 12.22 %
Q4 2019 15.11 % 13.85 % 11.69 %
Q1 2020 14.63 % 13.37 % 11.29 %
Q2 2020 14.62 % 13.11 % 11.13 %
Q3 2020 14.36 % 12.93 % 10.85 %
Q4 2020 14.28 % 13.00 % 10.78 %
Q1 2021 14.10 % 12.87 % 10.73 %
Q2 2021 14.19 % 13.18 % 10.94 %
Q3 2021 14.01 % 13.00 % 10.79 %
Q4 2021 13.53 % 12.28 % 10.37 %
Q1 2022 13.76 % 12.44 % 10.47 %
Q2 2022 13.61 % 12.12 % 10.22 %
Q3 2022 13.49 % 11.88 % 10.03 %
Q4 2022 13.71 % 12.02 % 10.04 %
Q1 2023 13.09 % 11.43 % 9.56 %
Q2 2023 12.46 % 11.09 % 9.05 %
Q3 2023 12.43 % 11.17 % 9.17 %
Q4 2023 12.04 % 11.02 % 9.18 %
Q1 2024 11.84 % 10.98 % 8.97 %
Q2 2024 11.82 % - 8.94 %


Per Share Data (Riyal)

Compared With The
Period Shares Outstanding (M) EPS (Riyal) Adjusted EPS (Riyal) Book Value (BV)
Q1 2015 1,200.00 0.66 0.66 1.20
Q2 2015 1,200.00 0.68 0.68 1.16
Q3 2015 1,200.00 0.69 0.69 1.23
Q4 2015 1,200.00 0.69 0.69 1.25
Q1 2016 1,200.00 0.63 0.63 1.23
Q2 2016 1,200.00 0.61 0.61 1.23
Q3 2016 1,200.00 0.61 0.61 1.29
Q4 2016 1,200.00 0.61 0.62 1.25
Q1 2017 1,200.00 0.65 0.65 1.27
Q2 2017 1,200.00 0.67 0.67 1.23
Q3 2017 1,200.00 0.69 0.69 1.33
Q4 2017 1,200.00 0.72 0.72 1.36
Q1 2018 1,200.00 0.72 0.71 1.35
Q2 2018 1,200.00 0.73 0.73 1.30
Q3 2018 1,200.00 0.77 0.77 1.41
Q4 2018 1,200.00 0.80 0.80 1.42
Q1 2019 1,200.00 0.81 0.81 1.32
Q2 2019 1,200.00 0.82 0.82 1.27
Q3 2019 1,200.00 0.83 0.83 1.39
Q4 2019 1,200.00 0.82 0.82 1.37
Q1 2020 1,200.00 0.84 0.84 1.36
Q2 2020 1,200.00 0.87 0.87 1.36
Q3 2020 1,200.00 0.83 0.83 1.41
Q4 2020 1,200.00 0.84 0.84 1.44
Q1 2021 1,200.00 0.85 0.85 1.43
Q2 2021 1,200.00 0.83 0.83 1.37
Q3 2021 1,200.00 0.85 0.84 1.46
Q4 2021 1,200.00 0.83 0.79 1.47
Q1 2022 1,200.00 0.81 0.77 1.48
Q2 2022 1,200.00 0.80 0.75 1.42
Q3 2022 1,200.00 0.80 0.76 1.50
Q4 2022 1,200.00 0.81 0.79 1.50
Q1 2023 1,200.00 0.81 0.78 1.48
Q2 2023 1,200.00 0.79 0.77 1.40
Q3 2023 1,200.00 0.81 0.79 1.50
Q4 2023 1,200.00 0.81 0.81 1.48
Q1 2024 1,200.00 0.79 0.79 1.42
Q2 2024 1,200.00 0.80 0.80 1.38

Multiple Ratios (End of Period Price)

Compared With The
Period P/E Adjusted P/E Price/book
Q1 2015 25.01 25.01 13.73
Q2 2015 24.53 24.53 14.28
Q3 2015 19.60 19.60 10.94
Q4 2015 17.37 17.37 9.57
Q1 2016 13.47 13.47 6.90
Q2 2016 14.55 14.55 7.19
Q3 2016 11.47 11.41 5.38
Q4 2016 14.14 14.07 6.91
Q1 2017 15.56 15.48 7.95
Q2 2017 16.44 16.51 8.93
Q3 2017 16.68 16.83 8.70
Q4 2017 15.22 15.35 8.12
Q1 2018 18.40 18.56 9.86
Q2 2018 18.18 18.18 10.24
Q3 2018 17.87 17.87 9.76
Q4 2018 19.00 19.00 10.73
Q1 2019 19.48 19.48 11.98
Q2 2019 20.45 20.45 13.11
Q3 2019 19.00 19.00 11.36
Q4 2019 20.18 20.18 12.08
Q1 2020 15.29 15.29 9.39
Q2 2020 16.81 16.81 10.71
Q3 2020 22.66 22.66 13.32
Q4 2020 20.75 20.75 12.06
Q1 2021 21.43 21.43 12.77
Q2 2021 25.35 25.35 15.38
Q3 2021 24.73 25.00 14.35
Q4 2021 23.81 25.06 13.35
Q1 2022 24.23 25.53 13.31
Q2 2022 20.25 21.59 11.45
Q3 2022 20.77 21.88 11.12
Q4 2022 18.56 19.10 9.99
Q1 2023 20.24 20.83 11.02
Q2 2023 21.01 21.39 11.78
Q3 2023 17.99 18.31 9.67
Q4 2023 19.21 19.21 10.55
Q1 2024 18.42 18.42 10.18
Q2 2024 15.78 15.78 9.17

Business Segments (Million)

Compared With The
Period Retail sector Wholesale sector E-Commerce Other sectors
Q1 2015 1,783.00 127.00 - -
Q2 2015 1,345.00 60.00 - -
Q3 2015 1,367.00 169.00 - -
Q4 2015 1,397.00 127.00 - -
Q1 2016 1,293.00 85.00 - 39.00
Q2 2016 1,303.00 50.00 - 38.00
Q3 2016 1,326.00 150.00 - 45.00
Q4 2016 1,673.00 71.00 - 50.00
Q1 2017 1,530.00 133.00 - 42.00
Q2 2017 1,497.00 43.00 - 45.00
Q3 2017 1,446.00 154.00 - 52.00
Q4 2017 1,772.00 121.00 - 107.00
Q1 2018 1,487.00 61.00 - 51.00
Q2 2018 1,596.00 35.00 - 63.00
Q3 2018 1,667.00 158.00 - 107.00
Q4 2018 1,873.00 118.00 - 146.00
Q1 2019 1,723.00 66.00 - 98.00
Q3 2019 1,914.00 170.00 135.00 32.00
Q4 2019 2,149.00 93.00 120.20 32.50
Q1 2020 2,071.00 77.00 148.00 44.00
Q2 2020 1,780.00 44.00 520.00 30.00
Q3 2020 1,804.00 66.00 145.00 23.00
Q4 2020 2,089.00 38.00 404.00 23.00
Q1 2021 2,276.00 40.00 193.00 21.00
Q2 2021 1,811.00 28.00 150.00 27.00
Q3 2021 1,868.00 78.00 255.00 23.00
Q4 2021 2,038.00 46.00 192.00 42.00
Q1 2022 2,012.00 69.00 181.00 25.00
Q2 2022 1,778.00 45.00 165.00 22.00
Q3 2022 2,003.00 115.00 371.00 28.00
Q4 2022 1,988.00 68.00 474.00 47.00
Q1 2023 1,950.00 64.00 665.00 39.00
Q2 2023 1,944.00 41.00 422.00 28.00
Q3 2023 1,988.00 126.00 485.00 40.00
Q4 2023 2,273.00 59.00 434.00 37.00
Q1 2024 2,105.00 53.00 470.00 22.00

Analysts Estimates (Million)

Item Q2 2024 (e) Q2 2024 (a) Change‬
Average 172.15 171.10 (0.6 %)

Estimates vs Actual (Million)

Item Q2 2024 (e) Q2 2024 (a) Change
Sico 165.00 171.10 3.7 %
Al Rajhi Capital 190.00 171.10 (9.9) %
SNB Capital 154.00 171.10 11.1 %
Riyad Capital 153.00 171.10 11.8 %
GIB Capital 150.00 171.10 14.1 %
OSOOL AND BAKHEET 205.65 171.10 (16.8) %
U-Capital 146.00 171.10 17.2 %
Value Capital 206.70 171.10 (17.2) %
YAQEEN 211.00 171.10 (18.9) %
AlJazira Capital 140.10 171.10 22.1 %

Current
Market Cap (M Riyal) 15,504.00
Enterprise Value (EV) (M) 15,653.93
Shares Outstanding ((M)) 1,200.00
EPS ( Riyal) (TTM) 0.80
Book Value (BV) ( Riyal) 1.38
Par Value ( Riyal) 1.00
Adjusted P/E (Last12) 16.15
P/E (TTM) 16.15
Price/book 9.39
Return on Average Assets (%) (TTM) 23.2
Return on Average Equity (%) (TTM) 57.6

Share Price

12.92
0.16 1.25 %

Jarir Marketing Co. (JARIR)

Quarterly Actuals vs Estimates 09/07/2024


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