BinDawood Holding CEO says dividend cut aims to boost liquidity

Ahmad BinDawood, CEO of BinDawood Holding Co.

BinDawood Holding Co. is pressing ahead with its carefully planned expansion strategy, CEO Ahmad BinDawood told Argaam.

He explained that the company’s recent financial decisions, including the reduction in cash dividends, are part of a broader strategy to improve liquidity and optimize the capital structure.

Allocating part of the cash surplus towards debt repayment will enhance the company’s financial resilience over the next two years, especially amid accelerated expansion and strategic investments executed since 2022, the CEO added.

BinDawood said the company completed a series of acquisitions, including International Applications Trading Co. (IATC), Ykone Co., Jumeirah Trading Co., Zahrat Al-Rawdah Pharmacies Co., and Toy Triangle Co., as well as additional acquisitions through subsidiaries.

These transactions have expanded the group’s business base, improved operational efficiency, and diversified its revenue streams.

The CEO said that outstanding bank loans stood at around SAR 350 million as of Sept. 30, 2025.

The company plans to repay them in full within the next two years, thereby strengthening its financial position and preparing the group for a new growth phase, he said.

BinDawood emphasized that the acquired companies currently represent about 15% of the group’s consolidated revenues, underscoring the success of its diversification strategy and improved profit margins.

The CEO reaffirmed continued expansion in financial technology, food distribution, and e-commerce, with plans to enter the food manufacturing sector - a strategic step to support the supply chain and ensure long-term growth in retail and distribution.

He added that the company aims to maintain a gross profit margin of 32% to 33%, a level already exceeded during the current period, with further improvement expected by year-end as operational efficiencies continue to rise.

The retail sector is facing structural challenges that require high flexibility and adaptability, BinDawood said, adding that the company follows a balanced approach that combines shareholder value creation with investment in a stronger, more sustainable future.

According to data available with Argaam, BinDawood Holding’s board of directors, on Nov. 9, approved a 4% cash dividend, or SAR 0.04 per share, for the first half of 2025, the lowest since 2021.

BinDawood Holding’s net profit (before minority interest) dropped 8% to SAR 156.4 million in the first nine months of 2025, compared with SAR 170.6 million in the same period of 2024. Third-quarter profit increased 15% to SAR 40.2 million.