BinDawood Holding —
BinDawood Holding Co. announces its Annual Financial results for the period ending on 2023-12-31
| Element List | Current Year | Previous Year | %Change | ||
|---|---|---|---|---|---|
| Sales/Revenue | 5,602,927,544 | 4,897,027,199 | 14.41 | ||
| Gross Profit (Loss) | 1,809,787,003 | 1,437,071,445 | 25.93 | ||
| Operational Profit (Loss) | 354,268,886 | 150,996,206 | 134.62 | ||
| Net profit (Loss) | 275,066,458 | 124,732,624 | 120.52 | ||
| Total Comprehensive Income | 274,651,435 | 146,303,570 | 87.73 | ||
| Total Share Holders Equity (After Deducting the Minority Equity) | 1,399,215,736 | 1,355,055,637 | 3.26 | ||
| Profit (Loss) per Share | 0.24 | 0.1 | |||
| All figures are in (Actual) Saudi Arabia, Riyals | |||||
| Element List | Amount | Percentage of the capital (%) | |
|---|---|---|---|
| Profit (Losses) Resulting From The Change In Investment Propertie’s Fair Value | – | – | |
| All figures are in (Actual) Saudi Arabia, Riyals | |||
| Element List | Explanation |
|---|---|
| The reason of the increase (decrease) in the sales/ revenues during the current year compared to the last year | Revenue for the full year 2023 was SAR 5,602.9 million, compared to SAR 4,897.0 million in 2022, showing a 14.4% year-on-year growth, driven by impressive performances from both BinDawood and Danube stores. This was achieved through enhancing the premium quality of the available products and using the knowledge gained from our customer Loyalty Programme to undertake strategic marketing campaigns and to update our product offerings to cater to emerging trends and demands.
Both brands recorded impressive growth in revenues, showing the highest ever sales during any year. BinDawood stores witnessed aggregate sales of SAR 1,739.8 million in FY 2023, reflecting an increase of 13.2% over the corresponding period in 2022. Revenue from Danube stores came in at SAR 3,540.3 million in FY 2023, compared to SAR 3,243.7 million in FY 2022. A contributory factor to the increase in revenue was the impact of Future Retail for Information Technology (“FTR”) subsidiaries acquired in July 2022. |
| The reason of the increase (decrease) in the net profit during the current year compared to the last year is | Gross profit for the full year of 2023 was SAR 1,809.8 million versus SAR 1,437.1 million in 2022. The Company posted a higher gross profit margin of 32.3% in 2023 compared with 29.3% in 2022.
Elevated customer engagement, enhanced product mix, strategic supplier negotiations, relentless attention to managing costs and a rigorous focus on quality output, all led to this impressive increase in gross margin.
Operating expenses (“Opex”) for the full year 2023 stood at SAR 1,464.3 million, compared to SAR 1,294.7 million in 2022. As a percentage of revenue, Opex reduced to 26.1% in 2023 from 26.4% in 2022 despite :
• Opex incurred to enhance our dark store mechanism. • The impact of Opex incurred by the two subsidiaries of FTR acquired in July 2022. • A charge of SAR 13.6 million from the amortization of intangible assets arising from those acquisitions. No amortization cost was recorded in 2022, as the purchase price allocation was conducted in 2023. • The incremental operating cost of new stores opened in 2023 and full period impact of stores opened in 2022. • An exceptional cost incurred for merger and acquisition related consultancy services.
Net Profit stood at SAR 275.1 million in FY 2023, compared to SAR 124.7 million in FY 2022, reflecting an increase in Net Profit Margin to 4.9% in 2023 as compared with 2.5% in 2022. This increase in Net Profit Margin is largely attributable to the cumulative impact of an increase in revenue and gross margin and is without the impact of any rent relief, which amounted to SAR 57.2 million in 2022. |
| Statement of the type of external auditor’s report | Unmodified opinion |
| Comment mentioned in the external auditor’s report, mentioned in any of the following paragraphs (other matter, conservation, notice, disclaimer of opinion, or adverse opinion) | None |
| Reclassification of Comparison Items | None |
| Additional Information | 1. Earnings per share for the two years presented are calculated based on the number of shares of the company amounting to 1,143 million shares after splitting each share into ten shares as decided by the Extraordinary General Assembly held on June 22, 2023.
2. Non-current assets decreased by 1.2% in FY23 driven mainly a decline in right-of-use assets which is partially offset by an increase in net fixed assets, intangible assets and goodwill. 3. Current assets increased by 9.7% in FY23 due to an increase in inventories, trade and other receivables, prepayments and advances and Cash and cash equivalents which are partially offset by the decline in due from related parties balances. 4. Current liabilities were increased by 13.9% in FY23 due to an increase in Trade payables, accruals and other liabilities, unearned income and other payables, due to related parties and zakat liabilities which are partially offset by the decrease in lease liabilities – current portion. 5. Non-current liabilities were reduced by 3.8% in FY23 due to lease payments which is partially offset by an increase in employees’ end of service benefits. 6. Shareholders’ equity increased by 2.7% driven by an increase in retained earnings. |
| Attached Documents |  |
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