BinDawood Holding —
BinDawood Holding Co. announces its Interim Financial Results for the Period Ending on 2021-06-30 ( Six Months )
| Element List | Current Quarter | Similar quarter for previous year | %Change | Previous Quarter | % Change |
|---|---|---|---|---|---|
| Sales/Revenue | 1,122,820,371 | 1,547,593,492 | -27.447 | 1,124,423,383 | -0.142 |
| Gross Profit (Loss) | 399,400,244 | 504,119,770 | -20.772 | 373,356,214 | 6.975 |
| Operational Profit (Loss) | 117,164,668 | 212,910,862 | -44.97 | 86,781,857 | 35.01 |
| Net Profit (Loss) after Zakat and Tax | 94,989,889 | 185,419,200 | -48.77 | 62,114,527 | 52.927 |
| Total Comprehensive Income | 94,989,889 | 185,419,200 | -48.77 | 62,114,527 | 52.927 |
| All figures are in (Actual) Saudi Arabia, Riyals | |||||
| Element List | Current Period | Similar period for previous year | %Change |
|---|---|---|---|
| Sales/Revenue | 2,247,243,754 | 2,960,806,334 | -24.1 |
| Gross Profit (Loss) | 772,756,458 | 956,566,406 | -19.215 |
| Operational Profit (Loss) | 203,946,525 | 364,488,051 | -44.045 |
| Net Profit (Loss) after Zakat and Tax | 157,104,416 | 311,678,077 | -49.594 |
| Total Comprehensive Income | 157,104,416 | 311,678,077 | -49.594 |
| Total Share Holders Equity (after Deducting Minority Equity) | 1,470,044,258 | 1,408,031,318 | 4.404 |
| Profit (Loss) per Share | 1.37 | 2.73 | |
| All figures are in (Actual) Saudi Arabia, Riyals | |||
| Element List | Explanation |
|---|---|
| The reason of the increase (decrease) in the net profit during the current quarter compared to the same quarter of the last year is | Revenue declined by 27.4% versus Q2 2020. This was mainly attributable to sales in Q2 2020 benefitting from an exceptional one-off boost from pantry-buying due to the pandemic lockdowns.
The gross profit reduced by 20.8% versus Q2 2020 due to higher sales in the same quarter last year. However, gross margin improved from 32.6% in Q2 2020 to 35.6% in Q2 2021 due to efficiency in procurement process, improved inventory & product cost management.
Operating expenses in Q2 2021 amounted to SAR 284.4 million which was slightly lower than the SAR 293.9 million in Q2 2020. The decrease is due to a reduction in Covid-19 related expenses and savings from the favourable renegotiation of a rental contract despite fixed cost impact of new store openings in 2020.
Net profit for Q2 2021 was SAR 95.0 million which is 48.8% lower than Q2 2020. This was mainly because of the greater impact of fixed costs following the drop in revenue. |
| The reason of the increase (decrease) in the net profit during the current quarter compared to the previous period of the current year is | Revenue remained largely unchanged in Q2 2021 versus Q1 2021 whereas, Gross profit increased by 7.0% due to an improvement in inventory and product cost management and this led to an increase in gross margin from 33.2% in Q1 2021 to 35.6% in Q2 2021.
Operating expenses for Q2 2021 declined by 1.5% as compared to Q1 2021 resulting from improved cost management. Net profit of SAR 95.0 million rose significantly by 53.0% in comparison with the previous quarter due to improvement in gross margin and better cost management. |
| The reason of the increase (decrease) in the net profit during the current period compared to the same period of the last year is | Revenue decreased by 24.1%. H1 2020’s sales growth was driven largely by pantry-buying in the second quarter in response to the pandemic. Further, revenue from stores serving the pilgrims declined due to limited inflow of local pilgrims during the period compared to the same period of the last year when Haramain stores were fully operational until mid-March 2020.
Gross margin improved by 210 basis points due to the Company implementing a set of inventory optimization, efficient pricing and procurement efficiency.
Operating expenses were lower in H1 2021 due to the reduction in Covid-related expenses as well as the favorable renegotiation of a rental contract.
The Company’s net profit margin reduced by 350 basis points due to a greater impact of fixed costs due to a decline in revenue. |
| Statement of the type of external auditor’s report | Unmodified conclusion |
| 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 | General comments:
The Company’s financial position remains strong with no bank debt. Cash generated from operations in Q2 2021 was SAR 206.9 million versus SAR 272.3 million in Q1 2021. This was mainly due to the payments to suppliers more than offsetting the reduction in inventory. As at 30 June 2021, the Company had a cash balance of SAR 526.4 million, which represented an increase of 126.7% as compared to 31 December 2020 due to profit and offsetting cash flow activities for the period.
Significant movements in the Statement of Financial Position as at 30th June 2021 (for the six-month period) were noted as follows: 1. Non-current assets declined by 4.7% resulting from lease modification of right-of-use assets as well as depreciation on property and equipment. 2. Current assets increased by 6.6% on account of increase in cash and receivables balances. 3. Current liabilities declined by 11.9% resulting from significant payments made to suppliers. 4. Non-current liabilities reduced by 2.7% in H1 2021 on account of net payments made against lease liabilities and the impact of lease modification. 5. Shareholders’ equity increased by 12.0% driven by an increase in retained earnings (net profit for the period). |
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,
CFO,
BinDawood Holding
BinDawood
