Increase in sales of supermarkets belonging to the Bin Dawood and Danube brands
Bin Dawood Holding Acquires Majority Stake in E-Commerce Distribution Partner
Jeddah, Kingdom of Saudi Arabia: Bin Dawood Holding Company (listed on the Saudi Stock Exchange “Tadawul Saudi” under No. 4161 “the Company”), which is one of the leading operators of hypermarkets and supermarkets in the Kingdom of Saudi Arabia in the field of food and luxury distribution, announced Today, it announces its financial results for the first quarter of 2022.
Mr. Ahmed Abdul Razzaq Bin Daoud, CEO of Bin Dawood Holding Company, said:
“Finally, we are starting to see a noticeable improvement in business activity [غالبية] The restrictions imposed by government agencies to limit the spread of the “Covid-19” pandemic have led to the return of the flow of pilgrims to the holy places of Mecca and Medina, as well as the movement of regular travel in the sectors of the tourism and business. . The increase in internal freedom of movement has also helped stimulate consumer spending in general and increased demand for our stores in particular.
“Our revenues in the first quarter of 2022G reached 1.2 billion Saudi riyals, an increase of 4.5% year on year and 11.2% compared to the previous quarter. This increase is mainly due to the return of Shaaban and The Makkah and Madinah business lifted all restrictions on performing Umrah rituals for the first quarter, reaching 65.5 million Saudi riyals.
“We are also pleased to have recently signed a definitive agreement to acquire International Business Applications, which has developed and currently operates our e-commerce channels. This transaction is subject to customary closing conditions and receipt of regulatory approvals, and It is expected to be finalized in the second half of 2022. It will invest Bin Dawood Holding will provide up to an additional SAR 160 million to the company over two years to support the development of online platforms and launch a network of modern closed stores and processing centers This strategic acquisition will allow the company to plan and direct its future growth in an increasingly digital world.
First Quarter 2022AD Financial Results
The company’s revenues in the first quarter of 2022 amounted to 1,175.2 million Saudi riyals, an increase of 4.5% compared to the same period of the previous year, and 11.2% compared to in the fourth quarter of 2021 AD, which recorded revenues of 1,057.1 million Saudi riyals. riyals.
This increase in income is mainly due to the return of the Shaaban and the start of the school year. Additionally, the company’s stores in Makkah and Madinah benefited from the lifting of all restrictions on the practice of Umrah.
Total profits for the first quarter of 2022 AD amounted to 383.7 million Saudi riyals, compared to 373.4 million Saudi riyals in the first quarter of 2021 AD and 268.9 million Saudi riyals in the previous quarter. Gross profit margin reached 32.6% in the first quarter of 2022 AD, slightly lower than the margin recorded for the same period of the previous year, 33.2%, with the resumption of the usual marketing campaigns, noting that it has significantly increased compared to the last quarter AD margin of 2021 which was 25.4%, which reflected the impact The cumulative percentage of supplier rebates decreases with the decline in sales.
Operating expenses in the first quarter of 2022 amounted to 312.8 million Saudi riyals, compared to 288.6 million Saudi riyals in the first quarter of 2021 AD and 296.9 million riyals in the previous quarter. The increase on a year-over-year basis reflects the impact of additional expenses resulting from the opening of new stores during 2021G, while the increase over the prior quarter is attributed to employee-related costs and expenses.
The company’s net profit in the first quarter of 2022G was 65.5 million Saudi riyals, compared to 62.1 million Saudi riyals for the same period of the previous year, which also included a rent exemption of 17 .1 million Saudi Riyals, which compensated for the slight decrease in gross margin and the increase in operating expenses, as indicated above.
The company has maintained a strong financial position without incurring bank debt, as cash flow from operations in the first quarter of 2022 AD was 1420 million Saudi riyals, compared to 214.6 million Saudi riyals in the last quarter of 2021 AD.
March 31, 2022; The company’s cash balance stood at 778.6 million Saudi Riyals, representing an increase of 60.8% compared to December 31, 2021.
On March 27, 2022, Bin Dawood Holding Company announced the signing of a definitive agreement through its subsidiary “Future Retail Information Technology” to acquire 62% of the shares of “International Commercial Applications”, which developed
E-commerce channels and currently operates them for the Bindawood and Danube brands of BinDawood Holding Company, in addition to managing all services of the online shopping platform and smartphone applications. This transaction is subject to customary closing conditions and receipt of regulatory approvals, and is expected to close in the second half of 2022G. The acquisition is in line with Bin Dawood Holding Company’s objectives to strengthen its e-commerce business and position and consolidate its multi-channel presence, thereby preparing the company for future future growth.
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About “Bin Dawood Holding”
Bin Dawood Holding Company is one of the leading operators of hypermarkets and supermarkets for food and luxury retail in the Kingdom of Saudi Arabia. The number of stores of the Company has reached 78 stores, including 52 hypermarkets and 26 supermarkets, all located at strategic locations in the Kingdom of Saudi Arabia. The Company operates two integrated brands: “Bin Dawood” and “Danube”.
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