AI Summary
Jarir Marketing Co. will likely report around 5% profit growth in 2020, unless hit by the COVID-19 outbreak, according to the company's board report for 2019.
Jarir is pursuing a strategy aimed at cutting profit margins to boost its market share amid the current economic conditions. It is also implementing its expansionary plans, penetrating new areas in Saudi Arabia, Kuwait, UAE, Bahrain and other countries.
Jarir is seeking to grow its e-platform by 8% and client base by 15%. It is also looking to double the size of the current distribution network and access new markets in 2020.
Jarir increased its rent space (showrooms, offices, and housing units) to 79,258 square meters by end of 2019, compared to 55,767 square meters before, expecting to boost rent space by 5,380 square meters by 2020.
In addition, Jarir is targeting a distribution rate of 80-100%, unless weighing on the company's financial requirements.
Jarir's profit grew by 3% year-on-year (YoY) in FY2019, compared to the board of directors' growth estimates of 7-10%, on higher operating expenses and increased cost of finance.
|
Previous Estimates versus Actual Growth |
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|
Period |
Estimated growth |
Actual Growth |
Variation |
|
2012 |
15 % |
11.0 % |
(4.0%) |
|
2013 |
15 % |
14.6 % |
(0.4%) |
|
2014 |
20 % |
14.1 % |
(5.9%) |
|
2015 |
15 % |
11.2 % |
(3.8%) |
|
2016 |
5 % |
(11%) |
(16%) |
|
2017 |
5 % |
18 % |
+13% |
|
2018 |
5 % |
11 % |
+6% |
|
2019 |
7 – 10 % |
3 % |
(4-6%) |
Jarir is planning to open 6-8 new showrooms in 2020. It has already opened five new outlets in 2019, compared to estimates of 7 showrooms in 2019, bringing the total count of showrooms to 59 in 2019.
|
The number of Jarir branches since 2009 |
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|
Period |
Within the Kingdom |
Abroad |
Total |
|
2009 |
23 |
4 |
27 |
|
2010 |
24 |
4 |
28 |
|
2011 |
26 |
4 |
30 |
|
2012 |
28 |
4 |
32 |
|
2013 |
28 |
4 |
32 |
|
2014 |
31 |
5 |
36 |
|
2015 |
34 |
6 |
40 |
|
2016 |
38 |
7 |
45 |
|
2017 |
41 |
9 |
50 |
|
2018 |
46 |
9 |
55 |
|
2019 |
48 |
11 |
59 |
Jarir's sales revenue from its Saudi operations jumped to SAR 7.96 billion, or around 94% of the company's gross sales revenue. The remaining 6% were generated from Jarir's units in Egypt and the GCC countries.
|
Sales, Net Profit by Region (SAR mln) |
||||
|
Sector |
Sales |
Net Profit |
||
|
2018 |
2019 |
2018 |
2019 |
|
|
Saudi Arabia |
6,908.9 |
7,960.4 |
913.7 |
948.2 |
|
Egypt and other GCC countries |
452.8 |
464.1 |
46.3 |
36.5 |
|
Total |
7,361.7 |
8,424.5 |
960.0 |
984.7 |
As for the company's ownership structure, Basil Jabr, the representative of the General Organization for Social Insurance (GOSI) offloaded more than 2.7 million shares, while Mohammed Al Aqeel sold around 2.2 million shares.
Abdullah Al Aqeel and Abdel Karim Al Aqeel also sold 1.9 million shares each, while Nasser Al Aqeel cut his ownership to 3%, selling 720,000 shares.
|
Major Shareholders’ Changes |
||||
|
Shareholder |
2018 |
2019 |
Variation |
Current stake |
|
Jarir Investment Trading Co. |
25,205,904 |
26,206,408 |
+ 1,000,504 |
21.83 % |
|
Nasser Al Agil |
4,560,000 |
3,840,000 |
(720,000) |
3 % |
|
Abdulkarim Al Agil |
5,520,000 |
3,840,000 |
(1,680,000) |
3 % |
|
Muhammad Al Agil |
4,848,338 |
2,688,338 |
(2,160,000) |
2 % |
|
Abdullah Al Agil |
4,574,604 |
2,657,844 |
(1,916,760) |
2 % |
|
Basel M. Jabr (GOSI) |
4,823,914 |
2,083,009 |
(2,740,905) |
2 % |
A total of 18 out of 6,420 investors own around 56% of the company's shares.
|
Investors by Stakes |
||||
|
Number of shares held |
2018 |
2019 |
||
|
Number of Investors |
Stake |
Number of Investors |
Stake |
|
|
> 1 mln |
17 |
63.86 % |
18 |
55.66 % |
|
500,000 to < 1 mln |
17 |
9.128 % |
24 |
12.52 % |
|
100,000 to < 500,000 |
74 |
12.491 % |
81 |
14.04% |
|
50,000 to < 100,000 |
78 |
4.669 % |
92 |
5.43 % |
|
10,000 to < 50,000 |
319 |
5.746 % |
415 |
7.57 % |
|
5,000 to < 10,000 |
303 |
1.754 % |
362 |
2.09 % |
|
1,000 to < 5,000 |
936 |
1.816 % |
1,112 |
2.11 % |
|
< 1,000 |
3,058 |
0.528 % |
4,316 |
0.60 % |
|
Total |
4,802 |
100 % |
6,420 |
100 % |
Also, the number of financial entities owning shares in Jarir jumped to 587, accounting for 64.26% of Jarir's ownership structure.
|
Investors Categories |
||||
|
Investor |
2018 |
2019 |
||
|
Number of Investors |
Stake |
Number of Investors |
Stake |
|
|
Corporations & financial institutions |
341 |
53.53 % |
587 |
64.26 % |
|
Retail |
4,461 |
42.47 % |
5,833 |
35.74 % |
|
Total |
4,802 |
100 % |
6,420 |
100 % |
|
Major Events in 2020 |
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|
Event |
Date |
Notes |
|
General assembly meeting for FY2018 |
April 13, 2020 |
|
|
Board meeting Q1 2020 |
May 7, 2020 |
|
|
Q1 2020 financials |
May 7, 2020 |
Q1 dividend, record date, payment date |
|
Board meeting Q2 2020 |
August 10, 2020 |
|
|
Q2 2020 financials |
August 11, 2020 |
Q2 dividend, record date, payment date |
|
Board meeting Q3 2020 |
November 3, 2020 |
|
|
Q3 2020 financials |
November 3, 2020 |
Q3 dividend, record date, payment date |
|
Board meeting Q4 2020 |
March 16, 2021 |
|
|
FY2020 financials, board report |
March 17, 2021 |
Q4 dividend, record date, payment date and board report for FY 2019 |
|
General assembly meeting for FY2019 |
April 30, 2021 |
|
On March 22, Jarir said it temporarily closed its showrooms in Saudi Arabia until further notice, in line with the Kingdom's precautionary measures to curb the COVID-19 outbreak.
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