BinDawood Holding expects Hajj season, Al Rawdah Pharmacies to lift Q2 2025

Ahmad A. BinDawood CEO of BinDawood Holding Co.

BinDawood Holding Co. expects to deliver strong performance in the second quarter of 2025, driven by several key factors, mainly the Hajj season, which typically sees a significant increase in consumer demand, CEO Ahmad A. BinDawood told Argaam in an interview.

Other factors include the full impact of Zahrat Al Rawdah Pharmacies’ results, which will be fully reflected in the upcoming quarter, unlike the first quarter that included a partial period.

He explained that the total number of the company’s branches reached 98 by the end of the first quarter of 2025. This includes 86 hypermarkets and supermarkets, in addition to 12 Dash stores distributed between the BinDawood Dash and Danube Dash brands.

The company is continuing with expanding its Dash branches and small stores, which have proven successful over the past period and helped boost growth. Dash branches have delivered positive performance thanks to a focus on speed and quality in service delivery. The management seeks to continue expanding this successful model in the coming period, according to the top executive.

He further said that the distribution of branches reflects the company's strategy to strengthen its geographic presence and meet the needs of various consumer segments and customers.

Additionally, the company’s IT sector achieved remarkable growth in Q1 2025, with a 46.1% increase YoY in total revenues, said BinDawood, adding that Icon's results represent 73% of the total sector.

He also stated that the group's retail segment witnessed positive growth in Q1 2025, with a 5.1% rise in total revenues compared to Q1 2024.

This growth came thanks to seasonal marketing campaigns and the opening of three new stores, including small stores that opened in 2024. This is in addition to the company's ability to offer products that better meet customer needs and strong relationships with suppliers, which enabled the company to secure better deals.

BinDawood also emphasized that online sales recorded significant growth, driven by several factors, including linking sales to delivery apps such as Jahez and The Chefz, in addition to wider product availability, and faster delivery of orders. He added that this was also attributed to the strengthening of digital platforms and the improvement of the online customer experience.

Despite the company's strong performance and positive growth in Q1 2025, it continues to cite a number of potential risks, including changes in off-season consumer spending patterns, increased competition in the local market, fluctuations in supply chains, along with inflationary pressures and rising operating costs. These factors could impact profit margins if they persist, according to the top executive.

BinDawood also stressed that the company is focused on capitalizing on available strategic opportunities, most notably the continued expansion of Dash stores and small stores, accelerating digital transformation initiatives, and completing the integration with Zahrat Al Rawdah Pharmacies. He also reiterated the company's focus on capitalizing on the Hajj season that will coincide with the second quarter, which represents a key driver of consumer demand in the Kingdom.