BinDawood Holding —
BinDawood Holding Co. announces its Interim Financial Results for the Period Ending on 2020-09-30 ( Nine Months )
| Element List | Current Quarter | Similar quarter for previous year | %Change | Previous Quarter | % Change |
|---|---|---|---|---|---|
| Sales/Revenue | 1,082,478,937 | 1,196,409,986 | -9.522 | 1,547,593,492 | -30.054 |
| Gross Profit (Loss) | 356,271,251 | 447,283,751 | -20.347 | 504,119,770 | -29.328 |
| Operational Profit (Loss) | 86,848,589 | 149,890,572 | -42.058 | 212,910,862 | -59.208 |
| Net Profit (Loss) after Zakat and Tax | 78,651,054 | 124,474,073 | -36.813 | 185,419,200 | -57.582 |
| Total Comprehensive Income | 78,651,054 | 124,474,073 | -36.813 | 185,419,200 | -57.582 |
| All figures are in (Actual) Saudi Arabia, Riyals | |||||
| Element List | Current Period | Similar period for previous year | %Change |
|---|---|---|---|
| Sales/Revenue | 4,043,285,271 | 3,623,502,354 | 11.585 |
| Gross Profit (Loss) | 1,312,837,657 | 1,222,696,246 | 7.372 |
| Operational Profit (Loss) | 451,336,640 | 370,736,346 | 21.74 |
| Net Profit (Loss) after Zakat and Tax | 390,329,131 | 295,262,774 | 32.197 |
| Total Comprehensive Income | 390,329,131 | 295,262,774 | 32.197 |
| Total Share Holders Equity (after Deducting Minority Equity) | 1,486,682,372 | 1,186,353,241 | 25.315 |
| Profit (Loss) per Share | 3.42 | 2.58 | |
| All figures are in (Actual) Saudi Arabia, Riyals | |||
| Element List | Explanation |
|---|---|
| Increase (Decrease) in Net Profit for Current Quarter Compared to the Same Quarter of the Previous Year is Attributed to | Revenues declined by 9.5% compared to the same quarter of last year. This decline was mainly due to the fact that revenues in Q3-2019 included seasonal revenues from the Hajj season. BinDawood has multiple branches serving pilgrims, which were adversely impacted during 2020 due to the Hajj season being carried out on a very limited scale by the government (in order to address Covid-19 safety concerns) in addition to the recent hike in the VAT in July 2020, which impacted consumer spending habits. Moreover, transitioning into school distant learning as precautionary measures in the fight against Covid-19 resulted in the Company not being able to carry out the back-to-school marketing campaign.
Meanwhile, operating expenses and depreciation remained within the same range. |
| Increase (Decrease) in Net Profit for Current Quarter Compared to the Previous Quarter is Attributed to | An exceptional increase in revenues for the 2nd quarter attributed to high sales due to government-imposed lockdowns which led to pantry-stocking by consumers. Whereas, in Q3 2020 precautionary measures were alleviated due to the fall in Covid-19 cases, this resulted in a more conservative buying approach by customers.
This is in addition to higher purchases in anticipation of the VAT increase in July 2020. |
| Increase (Decrease) in Net Profit for Current Period Compared to the Similar Period of the Previous Year is Attributed to | The following factors mainly explain the changes in the Income Statement and performance of the first nine months of 2020 in comparison with the first nine months of 2019:
1. Revenues for the nine months ending were 11.6% higher than the same period last year. A rollout of 4 new stores in 2020 alongside the rising demand for FMCG goods during the Covid-19 lockdown period were the main drivers for this increase. Additionally, the Company attracted more customers through greater investment in safety, cleaning and hygiene across all its branches. Danube performance helped offset a decline at BinDawood stores. Danube saw sales rise by SAR 540.2 million (23.5%) in 9M 2020 as the Company responded to a growing demand in premium food products; as well as the impact of 4 new stores opening in 2020. BinDawood saw sales decline by SAR 120.4 million (9.1%) in 9M 2020, largely due to management’s decision to temporary close some of its stores within the close vicinity of the Two Holy Mosques given the limited Hajj season. 2. Gross profit increased by 7.4% in the nine months of 2020 compared to 2019. 3. Net profit rose by 32.2% in 2020 compared to 2019.
Significant movements in the balance sheet as of 30th September 2020 were noted as follows: 4. Cash and bank balances increasing by 136.4% from SAR 214.9 million to SAR 508.2 million largely due to solid growth in revenues during the first 9 months. 5. Shareholders’ equity increased to 1,486.7 million driven by net profit contribution. |
| Basis of the External Auditor’s Opinion | Unmodified opinion |
| Modification, Qualification or Emphasis of a Matter as Stated within the External Auditor Opinion | Not applicable. |
| Reclassification of Comparison Items | No comparative figures for the previous period have been reclassified |
| Additional Information | As has been previously announced, one of the Company’s subsidiary has reopened a number of its branches located in the central area of Makkah and Madinah; the Company will analyze the financial impact of this and announce it in due course. |
The Capital Market Authority and Saudi Exchange take no responsibility for the contents of this disclosure, make no representations as to its accuracy or completeness, and expressly disclaim any liability whatsoever for any loss arising from, or incurred in reliance upon, any part of this disclosure, and the issuer accepts full responsibility for the accuracy of the information contained in it and confirms, having made all reasonable enquiries, that to the best of their knowledge and belief, there are no other facts or information the omission of which would make the disclosure misleading, incomplete or inaccurate.
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Salim Patka,
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BinDawood Holding
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