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BinDawood Holding Company Announces Its Condensed Consolidated Interim Financial Results for the Period Ended 30th June 2023 (Six Months)
| Element List | Current Quarter | Similar quarter for previous year | %Change | Previous Quarter | % Change |
|---|---|---|---|---|---|
| Sales/Revenue | 1,411,603,967 | 1,220,909,578 | 15.62 | 1,381,160,199 | 2.2 |
| Gross Profit (Loss) | 452,049,786 | 378,149,718 | 19.54 | 416,627,250 | 8.5 |
| Operational Profit (Loss) | 89,675,069 | 64,754,989 | 38.48 | 76,242,998 | 17.62 |
| Net Profit (Loss) after Zakat and Tax | 65,826,920 | 42,334,921 | 55.49 | 52,203,250 | 26.1 |
| Total Comprehensive Income | 64,941,199 | 42,334,921 | 53.4 | 55,871,050 | 16.23 |
| All figures are in (Actual) Saudi Arabia, Riyals | |||||
| Element List | Current Period | Similar period for previous year | %Change |
|---|---|---|---|
| Sales/Revenue | 2,792,764,166 | 2,396,144,559 | 16.55 |
| Gross Profit (Loss) | 868,677,036 | 761,819,900 | 14.03 |
| Operational Profit (Loss) | 165,918,068 | 137,572,417 | 20.6 |
| Net Profit (Loss) after Zakat and Tax | 118,030,171 | 107,793,426 | 9.5 |
| Total Comprehensive Income | 120,812,250 | 107,793,426 | 12.08 |
| Total Share Holders Equity (after Deducting Minority Equity) | 1,364,085,717 | 1,444,639,983 | -5.58 |
| Profit (Loss) per Share | 0.74 | 0.67 | |
| 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 in Q2 2023 increased by 15.6% vs Q2 2022. The increase is attributable to a strong Hajj season and targeted marketing campaigns across both banners, assisted by the market intelligence gathered from the loyalty program. Gross profit was SAR 452.0 million in Q2 2023 versus SAR 378.1 million in Q2 2022. The increase is due to an increase in revenue and uplift in Gross Margin by 105bps due to a better product mix, cooling down of inflation and an increase in the supplier support income.
Operating expenses were SAR 364.3 million in Q2 2023 versus SAR 315.3 million in Q2 2022, owing to the opening of a new store in Jeddah and also the resizing and expansion of the Taiba store located in Madinah. Further, the increase is also attributable to the operating expenses of Future Retail for Information Technology Company (FTR) subsidiaries which were not included in Q2 2022. Further, there is a full year impact of the amortization of intangible assets by SAR 9 million arising from the acquisitions made in 2022.
The Company’s Q2 2023 net profit was SAR 65.8 million versus SAR 42.3 million in Q2 2022. This increase was the cumulative impact of higher sales and improved gross margin, offset partly by an increase in operating expenses. |
| The reason of the increase (decrease) in the net profit during the current quarter compared to the previous quarter of the current year is | Revenue increased by 2.2% in Q2 2023 versus Q1 2023. The increase is attributed to strong Ramadan and Hajj season. Gross profit increased by 8.5% due to an increase in supplier support investment and better margins generated from product offerings. Operating expenses for Q2 2023 increased by 6.5% as compared to Q1 2023 due to branch opening expenses & expansion of Taiba store located in Madinah. Further, there is a full year impact of the amortization of intangible assets by SAR 9 million arising from the acquisitions made in 2022. Net profit of SAR 65.8 million indicates a significant increase by 26.1% in comparison with the previous quarter due to an increase in gross profit of SAR 35.4 million which is partially offset by an increase in operating expenses as explained above. |
| 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 increased by 16.6% year-on-year to SAR 2,792.8 million in H1 2023 as compared to SAR 2,396.1 million in H1 2022. The increase in sales in the first half of 2023 was driven by both BinDawood and Danube stores. BinDawood stores recognized sales of SAR 912.1 million in H1 2023 versus SAR 779.8 million in H1 2022, an increase of 17.0%. This was on the back of a sharp increase in international pilgrims for Hajj and Ramadan, which resulted in enhanced performance in our Makkah and Madinah stores. Danube stores posted sales of SAR 1,743.6 million in H1 2023 versus SAR 1,616.3 million in H1 2022. Continuous marketing campaigns and good pre-Ramadan season were the catalysts for this growth, an increase of 7.9%. In addition, the loyalty program has played a positive role in enhancing growth under both brands. Gross profit was SAR 868.7 million or 31.1% of sales in H1 2023 versus SAR 761.8 million in H1 2022 or 31.8% of sales in H1 2022. The higher gross margin in H1 2022 was on the back of a 32.6% gross margin reported in Q1 2022 which dropped to 27.0% in H2 2022 (29.3% in FY2022). This recovered substantially in Q1 2023 to 30.2% and has further strengthened to 32% in Q2 2023 due to an increase in supplier support and better product mix during the period. Operating expenses were SAR 706.4 million in H1 2023 versus SAR 628.1 million in H1 2022. The year-on-year increase reflects the impact of the opening of a new store in Jeddah as well as resizing of the existing store in Taiba, Madinah, to double its size, and the full period impact of stores opened in H2 2022. It also includes Ykone & International Applications Trading Company “IAC” operating expenses that were not present last year. Further, there is a full year impact of the amortization of intangible assets by SAR 9 million arising from the acquisitions made in 2022.
The Company’s net profit was SAR 118.0 million in H1 2023 compared to SAR 90.7 million in H1 2022 (after elimination of non-recurring rent relief), representing a net profit margin of 4.2% and 3.8% respectively. The increase in net profit reflects the cumulative impact of the increase in sales and gross profit, which was partly offset by the increase in operating expenses. However, notwithstanding the absolute increase in operating expenses, the ratio of operating expenses to revenue reduced from 26.2% in H1 2022 to 25.3% in H1 2023. |
| 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 continued to be strong with no bank debt. Cash generated from operations in H1 2023 was SAR 604.5 million versus SAR 564.9 million in H1 2022. Significant changes in the Statement of Financial Position as at 30th June 2023 (for the six-month period) were noted as follows: 1. Non-current assets increased by 2.7% resulting from an increase in property and equipment, intangible assets and right-of-use assets. 2. Current assets increased by 9% mainly because of increase in inventories, cash and cash equivalents and receivables balances. 3. Current liabilities increased by 15% resulting mainly from increased purchases to fulfill the rising consumer demands during full scale Hajj and Umrah seasons. 4. Non-current liabilities increased by 2% in H1 2023 because of increase in lease liabilities related to new stores. 5. Shareholders’ equity increased by 0.7% driven by an increase in retained earnings (net profit for the period). |
| 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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