Jarir announces a 16.33% drop in profits in the third quarter

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The financial results of Jarir Marketing Company “Jarir” revealed that it achieved a decline in its net profits during the third quarter of 2020 by 16.33% year-on-year.

And the company confirmed in a statement today, Sunday, on “Tadawul”, that the net profit amounted to about 255.2 million riyals, compared to 305 million riyals during the same quarter of 2019.

The company attributed the decline in net profit to the decline in sales of many retail departments, especially the departments of school and office supplies and smart phones, in addition to a decrease in most wholesale departments.

And at the level of the company’s results in the first nine months of 2020, the net profit increased to 715.3 million riyals compared to 707.8 million riyals during the same period of 2019, an increase of 1.06%.

She said that sales were negatively affected by the sales of school and office supplies departments and wholesale departments by the precautionary measure taken by the competent authorities to convert the study pattern to distance education to limit the spread of the Coronavirus pandemic.

She explained that sales were affected overall by the application of the increase in the value-added tax rate from 5% to 15%, which started with the beginning of the current quarter.

The delay in launching the new version of the iPhone also contributed to the decline in smartphone sales compared to the same quarter of the previous year.

And she added that the great negative impact on the back-to-school season led to a relative decrease in gross profit margin as a result of the negative change in sales, which partially contributed to the decrease in net profit by a greater rate than the decline in sales.

The net profit of Jarir Marketing Company, in the second quarter of 2020, after zakat and tax, increased to 208.4 million riyals, compared to 169.1 million riyals for the second quarter of last year, with a rate of 23.24%.







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