The estimated financial results of Jarir Marketing Company for the first quarter of 2023 showed a decrease in net profits after zakat tax by 1.39% to 247.8 million riyals, compared to 251.3 million riyals in the period compared to the previous year.
On a quarterly basis, the company’s profits decreased by 7.4% in the first quarter, compared to 267.6 million riyals in the fourth quarter of 2022.
The company said in a statement on “Tadawul Saudi Arabia”, today, Monday, that despite the increase in sales by 18.8% as a result of the increase in most departments, especially smart phones and video games, the gross profit witnessed a slight decrease due to the sharp decline in sales of the school supplies department compared to the same quarter of the year. Last year, which witnessed the resumption of school attendance for the primary and kindergarten levels for the first time, after the “Covid 19” restrictions.
The company indicated that the gross profit was affected by a slight decrease in profit margins.
And she continued: “Despite the increase in selling and marketing expenses to activate sales, this did not significantly affect the net profit due to the increase in other revenues, and therefore the decrease in net profit remained limited by 1.4%.”
Revenues increased by 18.8% in the first quarter to 2.717 billion riyals, compared to 2.286 billion riyals in the corresponding quarter of 2022.