BinDawood Holding’s Q1 net profit drops 20 per cent

Saudi retail operator of hypermarkets and supermarkets BinDawood Holding has reported a 20 per cent year-on-year 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 short of analysts’ mean estimate of SAR 69.6 million, according to data compiled by Refinitiv’s Eikon.

CEO of BinDawood Holding, 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 allow us to undertake acquisitions whenever an attractive opportunity is identified.”

BidDawood’s revenue rose by 18 per cent to SAR 1.4 billion as the return of pilgrims and tourists increased the performance of Haramain stores in Makkah and Madinah.

Revenue growth was also enhanced by the improved preparation for Ramadan as well as the company’s expanded digital presence, said BinDawood in a regulatory filing on Riyadh’s Tadawul exchange on Tuesday.

The retailer said it plans to roll out six or seven new stores in all three formats with a strategic focus on major cities in the Western and Central Regions of the country.

As of March 31, the company had a cash balance of SAR 705.2 million versus SAR 509.3 million on December 31, 2022.

Last August, the Holding acquired an 80.5 per cent stake in Paris-based marketing agency Ykone through its wholly-owned subsidiary Future Technology Retail.

The company has 83 stores, which include 54 hypermarkets, 26 supermarkets, and three express stores, located across Saudi Arabia and Bahrain, operating two complementary brands: BinDawood and Danube.