PHOTO
Saudi Arabian retailer BinDawood Holding reported a 20% year-on-year (YoY) drop in Q1 2023 net profit to 52 million riyals ($13.8 million) due to a one-off gain of SAR17 million accrued in the prior period.
The net profit fell well short of analysts’ mean estimate of SAR 69.6 million, according to data compiled by Refinitiv's Eikon.
Revenue rose 18% to SAR 1.4 billion as the return of pilgrims and tourists increased the performance of Haramain stores in Makkah and Madinah. Revenue growth also improved by the better preparation for Ramadan season as well as the company's expanded digital presence, BinDawood said in a regulatory filing on Riyadh's Tadawul exchange on Tuesday.
The retail operator of hypermarkets and supermarkets said it plans to roll out six or seven new stores in all the three formats with a strategic focus on major cities in Western and Central Regions of the country.
CEO Ahmad Abdulrazzaq BinDawood said: "In addition, we will continue exploring international opportunities, both organic and inorganic, to achieve geographical diversity. Our strong liquidity and debt-free position allows us to undertake acquisitions whenever an attractive opportunity is identified."
As of 31 March 2023, the company had a cash balance of SAR 705.2 million versus SAR 509.3 million on 31 December 2022.
Last August, it acquired an 80.5% stake in Paris-based marketing agency Ykone through its wholly owned subsidiary Future Technology Retail (FTR).
(Reporting by Brinda Darasha; editing by Seban Scaria)
