BinDawood Holding Company generated SAR 59.78 million in net profit after Zakat and tax during the first nine months (9M) of 2022, an annual drop of 73.70% from SAR 227.34 million.

Revenues grew by 7.63% year-on-year (YoY) to SAR 3.57 billion in the January-September 2022 period, compared to SAR 3.32 billion, according to the initial financial results.

The earnings per share (EPS) settled at SAR 0.52 in 9M-22, lower than SAR 1.99 in 9M-21.

In the third quarter (Q3) of 2022, the Saudi company shifted to net losses after Zakat and tax worth SAR 48 million, versus gains of SAR 70.24 million in the year-ago period.

The revenues increased by 9.72% to SAR 1.18 billion in Q3-22 from SAR 1.07 billion in Q3-21.

On a quarterly basis, the firm also turned to net losses in Q3-22, against net profits after Zakat and tax valued at SAR 42.33 million in Q2-22.

Meanwhile, the Q3-22 sales declined by 3.14% from SAR 1.22 billion in the April-June 2022 period.

Khalid BinDawood, Managing Director of BinDawood, said: “Our sales were up 7.63% YoY, which is hugely encouraging, as we see shoppers returning to our stores and responding positively to our loyalty program launched earlier this year.”

He added: “However, this revenue increase has come by sacrificing gross margin because of continued promotional and marketing activity.”

The Managing Director elaborated: “The costs associated with opening of new stores, M&A costs and the continued strengthening of the management team has resulted in a substantial increase in operating expenses. The combined effect has translated in a net loss of SAR 48 million for Q3-22.”

In the first half (H1) of 2022, BinDawood witnessed a 31.39% YoY plunge in net profit after Zakat and tax to SAR 107.79 million, compared to SAR 157.10 million.