BinDawood Holding —
BinDawood Holding Co. announces its Interim Financial Results for the Period Ending on 2021-09-30 ( Nine Months )
| Element List | Current Quarter | Similar quarter for previous year | %Change | Previous Quarter | % Change |
|---|---|---|---|---|---|
| Sales/Revenue | 1,077,804,895 | 1,082,478,937 | -0.431 | 1,122,820,371 | -4.009 |
| Gross Profit (Loss) | 397,298,175 | 356,271,251 | 11.515 | 399,400,244 | -0.526 |
| Operational Profit (Loss) | 95,457,407 | 86,848,589 | 9.912 | 117,164,668 | -18.527 |
| Net Profit (Loss) after Zakat and Tax | 70,244,219 | 78,651,054 | -10.688 | 94,989,889 | -26.05 |
| Total Comprehensive Income | 70,244,219 | 78,651,054 | -10.688 | 94,989,889 | -26.05 |
| All figures are in (Actual) Saudi Arabia, Riyals | |||||
| Element List | Current Period | Similar period for previous year | %Change |
|---|---|---|---|
| Sales/Revenue | 3,325,048,649 | 4,043,285,271 | -17.763 |
| Gross Profit (Loss) | 1,170,054,633 | 1,312,837,657 | -10.875 |
| Operational Profit (Loss) | 299,403,932 | 451,336,640 | -33.662 |
| Net Profit (Loss) after Zakat and Tax | 227,348,635 | 390,329,131 | -41.754 |
| Total Comprehensive Income | 227,348,635 | 390,329,131 | -41.754 |
| Total Share Holders Equity (after Deducting Minority Equity) | 1,397,413,477 | 1,486,682,372 | -6.004 |
| Profit (Loss) per Share | 1.99 | 3.42 | |
| 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 remained unchanged in Q3 2021 versus Q3 2020. The sales contribution from stores near the vicinity of holy mosque increased due to resumption of local pilgrims compared to Q3 2020. This increase was off-set against drop in sales from other stores due to easing of travel restrictions during summer holiday out of the Kingdom.
The gross profit increased by 11.5% versus Q3 2020 from SAR 356.3 million to SAR 397.3 million. The significant increase is a result of procurement efficiency and careful inventory management.
Operating expenses were SAR 304.1 million in Q3 2021 versus SAR 272.2 million in Q3 2020. The increase of 11.7% in expenses is mainly due to termination of Covid related governmental waivers and additional employment costs arising from strengthening the executive management team.
Net profit for Q3 2021 was SAR 70.2 million which is 10.8% lower than Q3 2020. This was mainly because of increase in operating expenses by 11.7% as explained above in Q3 2021 as compared to Q3 2020. |
| 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 for Q3 2021 declined by 4% versus Q2 2021 due to easing of travel restrictions out of the country which led to lower footfall in stores during the third quarter.
Gross profit was decreased mainly due to decrease in revenue. However, Gross margin percentage increased from 35.6% to 36.9% due to procurement efficiency and careful inventory management.
Operating expenses increased by 6.9% from SAR 284.4 million to SAR 304.1 million due to increase in employment cost to strengthen the executive management team and impact of cost associated with new store opening in the month of Aug 2021. Net Profit reduced by 26.1% in Q3 2021 versus Q2 2021 mainly due to result of the impact of fixed costs following a decline in revenue and increase in operating expenses. |
| 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 for the nine months period of 2021 decreased by 17.8% compared to the same period last year, mainly due to the revenue for the first six months of 2020 being unseasonably higher due to i) the effect of pantry buying in response to the pandemic, ii) bulk buying in anticipation of the change in VAT on 1 July and iii) restrictions on international travel.
Gross margin improved by 2.7% from 32.5% to 35.2% bearing testimony to the Company’s ability to careful inventory management, stringent wastage and shrinkage controls, efficient pricing and procurement efficiency.
Operating expenses were SAR 877.1 million in 9M 2021 versus SAR 869.8 million in 9M 2020. Despite the absence of Covid related governmental waivers and the higher costs associated with new branch openings since October 2020, there was a little increase in operating expenses due to the stringent cost containment measures introduced by management to offset the effect in costs.
The Company’s net profit margin reduced by 2.9% from 9.7% in 9M 2020 to 6.8% in 2021 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 | The Company’s financial position remains strong with no bank debt. As at 30 September 2021, the Company had a cash balance of SAR 290.6 million, which represented an increase of 25.2% as compared to 31 December 2020. Cash generated from operations in YTD 2021 was SAR 495.6 million versus SAR 647.1 million in YTD 2020. The decline was mainly due to the reduction in profits for the period under comparison.
Significant movements in the Statement of Financial Position as at 30th September 2021 (for the nine-month period) were noted as follows: 1. Non-current assets declined by 7.4% resulting from lease modification of right-of-use assets as well as depreciation on property and equipment. 2. Current assets increased by 0.8% on account of increase in receivables balances and cash and bank balance which was off-set against reduction in inventory and prepayments. 3. Current liabilities declined by 14.3% resulting from significant payments made to suppliers. 4. Non-current liabilities reduced by 6.2% on account of net payments made against lease liabilities and the impact of lease modification. 5. Shareholders’ equity increased by 6.4% driven by net increase in retained earnings after distribution of dividend in Q2 2021. |
| Attached Documents |  |
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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