BinDawood Holding —
BinDawood Holding Co. announces its Interim Financial results for the Period Ending on 2024-09-30 ( Nine Months )
| Element List | Current Quarter | Similar quarter for previous year | %Change | Previous Quarter | % Change |
|---|---|---|---|---|---|
| Sales/Revenue | 1,361,333,926 | 1,358,763,879 | 0.189 | 1,417,839,299 | -3.985 |
| Gross Profit (Loss) | 449,512,043 | 420,857,429 | 6.808 | 480,428,766 | -6.435 |
| Operational Profit (Loss) | 56,646,034 | 56,056,358 | 1.051 | 101,688,196 | -44.294 |
| Net profit (Loss) | 34,999,901 | 34,038,823 | 2.823 | 75,043,712 | -53.36 |
| Total Comprehensive Income | 41,934,525 | 30,508,738 | 37.45 | 74,162,058 | -43.455 |
| All figures are in (Actual) Saudi Arabia, Riyals | |||||
| Element List | Current Period | Similar period for previous year | %Change |
|---|---|---|---|
| Sales/Revenue | 4,252,096,946 | 4,151,528,045 | 2.422 |
| Gross Profit (Loss) | 1,380,980,308 | 1,289,534,465 | 7.091 |
| Operational Profit (Loss) | 241,727,238 | 221,974,425 | 8.898 |
| Net profit (Loss) | 170,590,265 | 152,068,993 | 12.179 |
| Total Comprehensive Income | 172,959,062 | 151,320,987 | 14.299 |
| Total Shareholders Equity (after Deducting Minority Equity) | 1,440,351,014 | 1,389,296,023 | 3.674 |
| Profit (Loss) per Share | 0.14 | 0.14 | |
| 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 quarter compared to the same quarter of the last year is | In Q3 2024, revenue held steady at SAR 1,361.3 million, slightly above SAR 1,358.8 million in Q3 2023. The company maintained sales and improved market share among point-of-sales retail customers, driven by strong performance from Future Tech Retail (FTR), its subsidiaries, and contributions from recently acquired Jumairah Trading Company (also referred to as “JTC” or “Distribution Business”). |
| The reason of the increase (decrease) in the net profit during the current quarter compared to the same quarter of the last year is | In Q3 2024, gross profit rose to SAR 449.5 million (33.0% of sales) from SAR 420.9 million (31.0%) in Q3 2023, highlighting the company’s success in optimizing its product mix and strengthening supplier support.
In Q3 2024, operating expenses rose to SAR 395.9 million (29.1% of revenue), up from SAR 367.0 million (27.0%) in Q3 2023, driven by investments in human capital, new store openings, and the acquisition of JTC. In Q3 2024, the Company’s net profit rose by 2.8% to SAR 35.0 million, driven by improved gross margin despite higher operating expenses. |
| The reason of the increase (decrease) in the sales/ revenues during the current quarter compared to the previous one is | Revenue for Q3 2024 decreased by 4.0% compared to Q2 2024. This decline is attributed to the absence of the seasonal surge seen in Q2 2024. Additionally, the impact of the summer vacation period, during which people traveled more than in Q2, contributed to the reduction in sales. However, the company experienced an increase in online sales, driven by enhanced operational efficiencies. |
| The reason of the increase (decrease) in the net profit (loss) during the current quarter compared to the previous one is | Gross profit declined by 6.4% compared to Q2 2024, primarily due to the decrease in sales as explained above.
Operating expenses rose to SAR 395.9 million in Q3 2024, up from SAR 381.5 million in Q2 2024. This increase was mainly driven by costs associated with new store openings and the acquisition of JTC.
Net profit fell by 53.4% in Q3 2024 compared to Q2 2024, primarily due to the reduced gross profit and increased expenses disclosed above. |
| The reason of the increase (decrease) in the sales/ revenues during the current period compared to the same period of the last year is | For the first nine months of 2024, revenue rose by 2.4% to SAR 4,252.1 million, with increased market share among point-of-sales customers. This growth was driven by a successful loyalty program, data-driven strategies, and an optimized product mix. BinDawood stores reported SAR 1,285.9 million in sales, slightly down due to two store closures, though achieving a 3.5% growth when excluding those closures. Danube stores saw a 1.8% rise to SAR 2,630.9 million, with 9.1% growth from point-of-sales customers due to strong performance from existing and new stores. The recent acquisition of JTC boosted overall revenue, which along with FTR saw a 37% revenue increase at Future Tech Retail, driven by International Applications Company and Ykone’s growth in the Middle East, also boosted overall revenue. |
| The reason of the increase (decrease) in the net profit during the current period compared to the same period of the last year is | For the first nine months of 2024, gross profit rose to SAR 1,381.0 million (32.5% of sales), up from SAR 1,289.5 million (31.1%) in 2023, reflecting strong margin maintenance aided by improved supplier support.
Operating expenses increased to SAR 1,146.9 million, with a slightly higher expense-to-sales ratio of 27.0%, driven by investments in human capital, new store openings, and the impact of stores opened in 2023.
Net profit grew by 12.2% to SAR 170.6 million, with a margin of 4.0%, up from 3.7%, due to higher sales and gross margin, partially offset by increased operating costs. |
| Statement of the type of external auditor’s report | Unmodified conclusion |
| 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) | Not applicable. |
| Reclassification of Comparison Items | No comparative figures for the previous period have been reclassified. |
| Additional Information | General comments:
During the period, the Company completed the acquisition of JTC and entered into franchise agreement with a well-known company in Qatar to open BinDawood stores in Qatar. Further, subsequent to the period end, the Company signed an agreement to acquire 100% of the shares of Zahrat Al Rawdah Pharmacies (“Zahrat”), enabling BDH to enter health and wellness, create synergies, and become the first KSA retailer to offer in-store pharmacy services.
Significant changes in the Statement of Financial Position as at 30th September 2024 (for the nine-month period) were noted as follows:
1. Non-current assets increased by 12.9% resulting from an increase in property and equipment, intangible assets and right-of-use assets.
2. Current assets decreased by 8.2% mainly because of decrease in trade and other receivables and cash and cash equivalents.
3. Current liabilities increased by 4.8% due to increase in Trade payables, accruals and other liabilities.
4. Non-current liabilities increased by 3.7% because of the increase in lease liabilities related to new stores.
5. Total equity increased by 4.2% driven by an increase in retained earnings. |
| 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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