The CEO of the company said Jarir MarketingMuhammad Al-Aqeel, in an interview with Al-Arabiya, today, Tuesday, said that sales of school supplies improved in the third quarter of this year, due to the partial return of schools, while the most important part of the first to sixth grade did not start, and although its performance was weak, However, it was better than the previous year.
He added that the release of the new version of the iPhone, “iPhone 13”, was very positive for the company, although the profit margin was not large, while sales of other divisions declined.
He explained that the results are considered good, and the school season may change and sales will rise in the fourth quarter of this year, especially with the change of the academic schedule to 3 semesters.
Mohammed Al-Aqeel pointed out that the increase in other revenues came from the expiration of an insurance policy, and it achieved additional non-operating income of 11 million riyals.
Jarir’s head of marketing stated that the results witnessed a decline in administrative and sales costs, noting that the profitability of the iPhone ranged between 5 to 6%.
On the possibility of the company being affected by the problems of the electronics industry globally, Al-Aqeel said that the company has already started facing problems in supply and shipping since the beginning of this year, and is working hard to treat them, explaining that sales were expected to rise by 10%, but fell 10%.
He added that the company expects to increase its sales and profits in the fourth quarter of this year, and it has a stock of most of the materials, but it faces a challenge in the inventory of smart phones because its distribution is much less than last year.
Muhammad Al-Aqeel explained that the demand is good, especially for phones and computers, and the demand is much greater than the supply of iPhones, while the demand for school supplies was low, as there is a large stock of school tools.
The preliminary financial results of Jarir Marketing Company showed an increase in its net profit after zakat and tax, by 6.78% in the third quarter of 2021, to reach 272.5 million riyals, compared to 255.2 million riyals in the same quarter of 2020.
Jarir Marketing said in a statement on “Tadawul Saudi”, today, Tuesday, that the reason for the increase is due to the increase in sales of some departments, especially the departments of school and office supplies and smart phones, as a result of the partial return of the school season in the current quarter and the launch of the new version of the iPhone smartphone compared to the same quarter. last year, which did not witness any of the two events. The increase is also due to the increase in other revenues.
On a quarterly basis, the company’s net profit increased by 44.03%, compared to a net profit of about 189.2 million riyals in the second quarter of 2021.
During the first nine months of this year, the net profit of Jarir Marketing Company after zakat and tax increased by 1.97% to reach 729.4 million riyals, compared to 715.3 million riyals in the same period of 2020.