Jarir’s 9M 2023 profit slips to SAR 699.9 mln; Q3 at SAR 296.3 mln

Jarir Marketing Co.’s (JMC) net profit saw a marginal decline to SAR 699.9 million in the first nine months of 2023, from SAR 702.2 million in the prior-year period.

The nine-month results were impacted by higher non-operating expenses, especially finance costs, primarily due to increased borrowing in the second quarter of the year. 

On the other hand, sales rose by 14.4% ​​year-on-year (YoY) on better sales of most sections, especially smartphones, computers and video games. The gross profit witnessed a slight decrease of 0.2% YoY, due to price discounts to promote sales, especially smartphones and computers, amid a change in the sales mix towards the relatively less profitable sections.

The third-quarter net profit rose by 8% to SAR 296.3 million, from SAR 273.72 million in Q3 2022, buoyed by a 4.8% rise YoY in sales from most sections, especially computers and video games, as well as better other income.  

Selling and marketing expenses decreased on a YoY basis.

Jarir’s net earnings also surged 90.2% from SAR 155.78 million in Q2 2023, as sales grew by 8.3% quarter-on-quarter driven by most sections, mainly the schools and office supplies, and computers. The company reported a relative increase in profit margins due to a favorable change in the sales mix towards the relatively high profitable sections, which largely contributed to a gross profit rise of 60.4%.

Total shareholders’ equity, no minority interest, stood at SAR 1.79 billion as of Sept. 30, 2023, down from SAR 1.80 billion a year earlier.

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