Jarir Marketing Company announces the estimated financial results for the period ending on 30-09-2020 (nine months)

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Jarir Marketing Company announces the estimated financial results for the period ending on 30-09-2020 (nine months), today, Sunday, October 11, 2020 03:19 PM

11 October 2020 02:41 PM

ParagraphCurrent quarterThe same quarter of the previous yearthe change%Previous quarterthe change %
Sales / revenue2,037.92,251.2-9.4742,373.9-14.153
Total profit (loss)334.5389.1-14.032303.710.141
Operating profit (loss)274.9329.3-16.51922721.101
Net profit (loss) after zakat and tax255.2305-16.327208.422.456
Total comprehensive income256.4306.6-16.37320624.466
All figures are in (million) Saudi riyals
ParagraphCurrent periodThe corresponding period of the previous yearthe change%
Sales / revenue6,7526,030.511.964
Total profit (loss)965.7925.24.377
Operating profit (loss)774.2773.80.051
Net profit (loss) after zakat and tax715.3707.81.059
Total comprehensive income715.3713.50.252
Total Shareholder Equity (after excluding minority interests)1,688.41,668.51.192
Earning (loss) per share5.965.9
All figures are in (million) Saudi riyals
ParagraphClarification
The reason for the increase (decrease) in net profit during the current quarter compared to the same quarter of the previous year is due toThe reason for the decline is:

– Decline in sales of many retail departments, especially the departments of school and office supplies and smartphones, in addition to a decrease in most of the wholesale departments; As the sales of school and office supplies departments and wholesale sections were negatively affected by the precautionary measure taken by the competent authorities to transfer the study pattern to distance education to limit the spread of the Coronavirus pandemic.

Sales were also affected overall by applying 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.

– 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 reason for the increase (decrease) in net profit during the current quarter compared to the previous quarter is due toDespite the decrease in sales for the current quarter compared to the previous quarter by 14.2%, there is an increase in net profit by 22.5% due to: – Decrease in general and administrative expenses, which in the previous quarter included the company’s support for the Health Endowment Fund at the Ministry of Health by 20 million riyals.

– The relative improvement in gross profit margin as a result of the change in the selling balance in favor of the relatively high profitable divisions compared to the previous quarter.

The profit margin improved as a result of the discounts obtained from suppliers.

The reason for the increase (decrease) in net profit during the current period compared with the same period of the previous year is due toDespite the increase in sales by 12% in the current period compared to the same period of the previous year, which is due to the increase in some retail departments, especially the computers section and the smart phone section, the increase in net profit was only 1.1% due to:

– The relative decline in gross profit margin due to the significant impact of the return to school season by the precautionary measure taken by the concerned authorities to transfer the study pattern to distance education to limit the spread of the Coronavirus pandemic.

– The increase in general and administrative expenses, which included during the current period the company’s support for the Health Endowment Fund at the Ministry of Health by 20 million riyals, and the support for the We Are All Tender campaign of the Digital Tender Initiative of the Ministry of Communications and Information Technology by about 5 million riyals.

The nature of the auditor’s opinionUnmodified opinion
Note, reservation or drawing attention as stated in the report of the external auditorThese estimated financial results for the period ending on September 30, 2020 AD were prepared by the company’s management and have not yet been examined by its external auditor.
Reclassification of some comparative figuresThere is no
additional information– The difference between comprehensive income and net profit in the current quarter is due to the difference in the currency of the subsidiary in Egypt due to the change in the exchange rate of the Egyptian pound against the Saudi riyal

Three new showrooms were opened during this period, on 10/1/2020, 7/27/2020, and 9/16/2020







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