The financial statements of Jarir Marketing, announced today, Thursday, increased its profits by 23.24% during the second quarter ended June 30, 2020.
The company said, in a statement to the “Tadawul” financial market, that it achieved a net profit of 208.4 million riyals, compared to a profit of 169.1 million riyals in the quarter ended June 30, 2019.
The company achieved an increase in operating profit to 227 million riyals, compared to an operating profit of 190.6 million riyals during the corresponding quarter of last year.
The company attributed the increase in profits during the quarter ended June 30, 2020:
- Increase in sales of some retail departments, especially the computers and computer supplies division, and most wholesale departments. Online sales contributed a lot to the rise in retail sales. At a time when the performance of exhibitions was greatly affected by the preventive measures to limit the spread of the Covid 19 pandemic, online sales achieved a great leap as it is the main shopping channel available to consumers during the periods of closings and curfews.
- Profit margin improved for some departments, especially computer accessories and video games due to the difference in sales mix within the section in favor of relatively higher profitability items.
- Decrease in some elements of operating costs as a result of government initiatives to mitigate the effects of the Covid 19 pandemic, such as the Monetary Agency’s initiative to pay point of sale and e-commerce operations fees.
- Low cost of financing as a result of paying off bank borrowing balances.
Sales increased to 2.37 billion riyals during the second quarter, compared to sales of 1.9 billion riyals during the corresponding quarter of the previous year.
At the level of the first half of the year, the company’s profits amounted to 499.3 million riyals, compared to 444.5 million riyals in the corresponding half of the year 2019.
The company achieved a net profit of 251.7 million riyals in the first quarter of 2020 compared to a profit of 233.7 million riyals in the quarter ended March 31, 2019.
While it had achieved a net profit of 984.7 million riyals in 2019, compared to a profit of 960 million riyals in 2018.
The company attributed the rise in profits to the increase in sales of most sections of the retail sector, especially electronics sales, supported by smart phone sales and computer sales, and the increase in the number of exhibitions from 55 to 59 has contributed to the increase in retail sales.