Introduction

The profit of marketing company Jarir decreased by 12% in the second quarter of 2023 to 155.8 million rials compared to 177.2 million rials in the same quarter of the previous year.

Analysts’ Expectations

Jarir’s earnings are below analysts’ average expectations of 175 million rials.

Factors Contributing to the Decline

The company said in a statement to Tadawul Saudi Arabia today, Sunday, that the decline in profits was due to a 3.6% decrease in gross margin due to discounts on selling prices to stimulate sales, especially smartphones and computers, and due to a change in the structure sales towards relatively less profitable sections.

Increase in Sales

The decline in gross margin came despite a 21.1% increase in sales as a result of increased sales in almost all departments, especially smartphones and accessories, computers and video games.

Other Contributing Factors

The company indicated a decrease in other income compared to the same quarter of the previous year, including realized profits from the sale of the company’s real estate in the Al Raqah area of ​​Al Khobar, amounting to approximately 10 million Saudi Riyals. The cost of financing also increased as a result of increased borrowing.