Jarir’s H1 2023 profit drops 6% to SAR 403.5 mln; Q2 at SAR 155.8 mln

16/07/2023 Argaam Exclusive

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Share Price

13.42
0.02 0.15 %

Jarir Marketing Co. (JARIR)

Jarir Marketing Co. (JMC) reported a 6% decline in H1 2023 net profit to SAR 403.5 million from SAR 428.5 million a year earlier.



Financials (M)

Item 6m 2022 6m 2023 Change‬
Revenues 4,297.37 5,153.38 19.9 %
Gross Income 573.64 563.31 (1.8 %)
Operating Income 427.93 412.10 (3.7 %)
Net Income 428.48 403.53 (5.8 %)
Average Shares 1,200.00 1,200.00 -
EPS (Riyals) 0.36 0.34 (5.8 %)

The first-half bottom line decreased on an increase in selling and marketing expenses for sales promotion, lower other income, along with higher finance costs due to increased borrowing.

 

By contrast, sales jumped by 19.9% year-on-year (YoY) on better sales from most sections, especially smartphones and related accessories, computers and video games. The gross profit decreased by 1.8% YoY on pricing discounts to promote sales, especially smartphones and computers, in addition to the change in the sales mix towards the relatively low-profitable sections.



Current Quarter Comparison (M)

Compared With The
Item Q2 2022 Q2 2023 Change‬
Revenues 2,010.48 2,435.73 21.2 %
Gross Income 248.59 239.57 (3.6 %)
Operating Income 169.81 162.68 (4.2 %)
Net Income 177.16 155.78 (12.1 %)
Average Shares 1,200.00 1,200.00 -
EPS (Riyals) 0.15 0.13 (12.1 %)

The second-quarter net profit fell by 12% YoY to SAR 155.8 million.

 

Jarir’s net profit also dipped by 37.1% from SAR 247.75 million in Q1 2023.  

 

Total shareholders’ equity, no minority interest, stood at SAR 1.68 billion as of June 30, 2023, compared to SAR 1.70 billion a year earlier.



Financial results (Million)

Period Revenues Change Gross Income Change Net Income Change EPS(Riyal)
Q1 2014 1,398.85 5.2 % 235.05 11.5 % 201.33 11.3 % 0.17
Q2 2014 1,289.43 2.5 % 173.66 5.9 % 135.23 7.1 % 0.11
Q3 2014 1,426.25 6.9 % 237.37 8.5 % 203.00 9.0 % 0.17
Q4 2014 1,584.20 20.0 % 240.39 19.7 % 205.81 28.6 % 0.17
Q1 2015 1,909.51 36.5 % 283.51 20.6 % 247.02 22.7 % 0.21
Q2 2015 1,405.76 9.0 % 191.37 10.2 % 154.86 14.5 % 0.13
Q3 2015 1,536.06 7.7 % 253.41 6.8 % 218.50 7.6 % 0.18
Q4 2015 1,524.05 (3.8 %) 243.74 1.4 % 208.09 1.1 % 0.17
Q1 2016 1,417.43 (25.8 %) 214.77 (24.2 %) 174.96 (29.2 %) 0.15
Q2 2016 1,390.74 (1.1 %) 162.76 (15.0 %) 126.48 (18.3 %) 0.11
Q3 2016 1,520.93 (1.0 %) 252.93 (0.2 %) 217.92 (0.3 %) 0.18
Q4 2016 1,793.46 17.7 % 244.80 0.4 % 215.32 3.5 % 0.18
Q1 2017 1,704.95 20.3 % 247.38 15.2 % 221.44 26.6 % 0.18
Q2 2017 1,584.80 14.0 % 192.72 18.4 % 147.76 16.8 % 0.12
Q3 2017 1,651.79 8.6 % 290.72 14.9 % 246.53 13.1 % 0.21
Q4 2017 2,000.39 11.5 % 306.42 25.2 % 251.93 17.0 % 0.21
Q1 2018 1,599.42 (6.2 %) 242.67 (1.9 %) 219.10 (1.1 %) 0.18
Q2 2018 1,693.32 6.8 % 212.53 10.3 % 162.59 10.0 % 0.14
Q3 2018 1,932.08 17.0 % 338.56 16.5 % 288.00 16.8 % 0.24
Q4 2018 2,136.90 6.8 % 320.07 4.5 % 290.31 15.2 % 0.24
Q1 2019 1,886.64 18.0 % 302.14 24.5 % 233.69 6.7 % 0.19
Q2 2019 1,892.58 11.8 % 233.90 10.1 % 169.13 4.0 % 0.14
Q3 2019 2,251.23 16.5 % 389.14 14.9 % 304.97 5.9 % 0.25
Q4 2019 2,394.06 12.0 % 348.00 8.7 % 276.94 (4.6 %) 0.23
Q1 2020 2,340.22 24.0 % 327.46 8.4 % 251.69 7.7 % 0.21
Q2 2020 2,373.92 25.4 % 303.74 29.9 % 208.39 23.2 % 0.17
Q3 2020 2,037.85 (9.5 %) 334.46 (14.1 %) 255.24 (16.3 %) 0.21
Q4 2020 2,553.83 6.7 % 362.96 4.3 % 287.67 3.9 % 0.24
Q1 2021 2,530.39 8.1 % 337.57 3.1 % 267.64 6.3 % 0.22
Q2 2021 2,015.28 (15.1 %) 262.03 (13.7 %) 189.24 (9.2 %) 0.16
Q3 2021 2,224.49 9.2 % 344.09 2.9 % 272.50 6.8 % 0.23
Q4 2021 2,318.11 (9.2 %) 285.64 (21.3 %) 262.48 (8.8 %) 0.22
Q1 2022 2,286.89 (9.6 %) 325.05 (3.7 %) 251.31 (6.1 %) 0.21
Q2 2022 2,010.48 (0.2 %) 248.59 (5.1 %) 177.16 (6.4 %) 0.15
Q3 2022 2,517.03 13.2 % 372.26 8.2 % 273.72 0.4 % 0.23
Q4 2022 2,577.29 11.2 % 341.48 19.5 % 267.57 1.9 % 0.22
Q1 2023 2,717.65 18.8 % 323.74 (0.4 %) 247.75 (1.4 %) 0.21
Q2 2023 2,435.73 21.2 % 239.57 (3.6 %) 155.78 (12.1 %) 0.13

Profitability

Period Gross Margin OIBDA Margin Net Margin Before Unusual Items
Q1 2014 15.41 % 12.97 % 12.68 %
Q2 2014 15.51 % 13.03 % 12.78 %
Q3 2014 15.58 % 13.14 % 12.87 %
Q4 2014 15.56 % 13.18 % 13.08 %
Q1 2015 15.06 % 12.79 % 12.74 %
Q2 2015 15.06 % 12.84 % 12.82 %
Q3 2015 15.05 % 12.90 % 12.84 %
Q4 2015 15.25 % 13.19 % 12.99 %
Q1 2016 15.35 % 13.10 % 12.86 %
Q2 2016 14.91 % 12.59 % 12.41 %
Q3 2016 14.94 % 12.65 % 12.50 %
Q4 2016 14.30 % 12.26 % 12.07 %
Q1 2017 14.16 % 12.40 % 12.25 %
Q2 2017 14.20 % 12.33 % 12.10 %
Q3 2017 14.49 % 12.50 % 12.23 %
Q4 2017 14.94 % 12.73 % 12.39 %
Q1 2018 15.10 % 12.90 % 12.55 %
Q2 2018 15.15 % 13.07 % 12.67 %
Q3 2018 15.23 % 13.18 % 12.76 %
Q4 2018 15.13 % 13.18 % 13.04 %
Q1 2019 15.34 % 13.45 % 12.74 %
Q2 2019 15.22 % 13.68 % 12.50 %
Q3 2019 15.25 % 13.76 % 12.22 %
Q4 2019 15.11 % 13.85 % 11.69 %
Q1 2020 14.63 % 13.37 % 11.29 %
Q2 2020 14.62 % 13.11 % 11.13 %
Q3 2020 14.36 % 12.93 % 10.85 %
Q4 2020 14.28 % 13.00 % 10.78 %
Q1 2021 14.10 % 12.87 % 10.73 %
Q2 2021 14.19 % 13.18 % 10.94 %
Q3 2021 14.01 % 13.00 % 10.79 %
Q4 2021 13.53 % 12.28 % 10.37 %
Q1 2022 13.76 % 12.44 % 10.47 %
Q2 2022 13.61 % 12.12 % 10.22 %
Q3 2022 13.49 % 11.88 % 10.03 %
Q4 2022 13.71 % 12.02 % 10.04 %
Q1 2023 13.09 % 11.58 % 9.56 %
Q2 2023 12.46 % 11.12 % 9.05 %


Per Share Data (Riyal)

Compared With The
Period Shares Outstanding (M) EPS (Riyal) Adjusted EPS (Riyal) Book Value (BV)
Q1 2014 1,200.00 0.56 0.56 1.04
Q2 2014 1,200.00 0.57 0.57 1.02
Q3 2014 1,200.00 0.58 0.58 1.10
Q4 2014 1,200.00 0.62 0.62 1.13
Q1 2015 1,200.00 0.66 0.66 1.20
Q2 2015 1,200.00 0.68 0.68 1.16
Q3 2015 1,200.00 0.69 0.69 1.23
Q4 2015 1,200.00 0.69 0.69 1.25
Q1 2016 1,200.00 0.63 0.63 1.23
Q2 2016 1,200.00 0.61 0.61 1.23
Q3 2016 1,200.00 0.61 0.61 1.29
Q4 2016 1,200.00 0.61 0.62 1.25
Q1 2017 1,200.00 0.65 0.65 1.27
Q2 2017 1,200.00 0.67 0.67 1.23
Q3 2017 1,200.00 0.69 0.69 1.33
Q4 2017 1,200.00 0.72 0.72 1.36
Q1 2018 1,200.00 0.72 0.71 1.35
Q2 2018 1,200.00 0.73 0.73 1.30
Q3 2018 1,200.00 0.77 0.77 1.41
Q4 2018 1,200.00 0.80 0.80 1.42
Q1 2019 1,200.00 0.81 0.81 1.32
Q2 2019 1,200.00 0.82 0.82 1.27
Q3 2019 1,200.00 0.83 0.83 1.39
Q4 2019 1,200.00 0.82 0.82 1.37
Q1 2020 1,200.00 0.84 0.84 1.36
Q2 2020 1,200.00 0.87 0.87 1.36
Q3 2020 1,200.00 0.83 0.83 1.41
Q4 2020 1,200.00 0.84 0.84 1.44
Q1 2021 1,200.00 0.85 0.85 1.43
Q2 2021 1,200.00 0.83 0.83 1.37
Q3 2021 1,200.00 0.85 0.84 1.46
Q4 2021 1,200.00 0.83 0.79 1.47
Q1 2022 1,200.00 0.81 0.77 1.48
Q2 2022 1,200.00 0.80 0.75 1.42
Q3 2022 1,200.00 0.80 0.76 1.50
Q4 2022 1,200.00 0.81 0.79 1.50
Q1 2023 1,200.00 0.81 0.78 1.48
Q2 2023 1,200.00 0.79 0.77 1.40

Multiple Ratios (End of Period Price)

Compared With The
Period P/E Adjusted P/E Price/book
Q1 2014 27.52 27.52 14.86
Q2 2014 25.93 25.93 14.50
Q3 2014 25.92 25.92 13.78
Q4 2014 22.43 22.43 12.30
Q1 2015 25.01 25.01 13.73
Q2 2015 24.53 24.53 14.28
Q3 2015 19.60 19.60 10.94
Q4 2015 17.37 17.37 9.57
Q1 2016 13.47 13.47 6.90
Q2 2016 14.55 14.55 7.19
Q3 2016 11.47 11.41 5.38
Q4 2016 14.14 14.07 6.91
Q1 2017 15.56 15.48 7.95
Q2 2017 16.44 16.51 8.93
Q3 2017 16.68 16.83 8.70
Q4 2017 15.22 15.35 8.12
Q1 2018 18.40 18.56 9.86
Q2 2018 18.18 18.18 10.24
Q3 2018 17.87 17.87 9.76
Q4 2018 19.00 19.00 10.73
Q1 2019 19.48 19.48 11.98
Q2 2019 20.45 20.45 13.11
Q3 2019 19.00 19.00 11.36
Q4 2019 20.18 20.18 12.08
Q1 2020 15.29 15.29 9.39
Q2 2020 16.81 16.81 10.71
Q3 2020 22.66 22.66 13.32
Q4 2020 20.75 20.75 12.06
Q1 2021 21.43 21.43 12.77
Q2 2021 25.35 25.35 15.38
Q3 2021 24.73 25.00 14.35
Q4 2021 23.81 25.06 13.35
Q1 2022 24.23 25.53 13.31
Q2 2022 20.25 21.59 11.45
Q3 2022 20.77 21.88 11.12
Q4 2022 18.56 19.10 9.99
Q1 2023 20.24 20.83 11.02
Q2 2023 21.01 21.39 11.78

Business Segments (Million)

Compared With The
Period Retail sector Wholesale sector E-Commerce Other sectors
Q1 2014 1,275.00 124.00 - -
Q2 2014 1,230.00 59.00 - -
Q3 2014 1,252.00 175.00 - -
Q4 2014 1,486.00 98.00 - -
Q1 2015 1,783.00 127.00 - -
Q2 2015 1,345.00 60.00 - -
Q3 2015 1,367.00 169.00 - -
Q4 2015 1,397.00 127.00 - -
Q1 2016 1,293.00 85.00 - 39.00
Q2 2016 1,303.00 50.00 - 38.00
Q3 2016 1,326.00 150.00 - 45.00
Q4 2016 1,673.00 71.00 - 50.00
Q1 2017 1,530.00 133.00 - 42.00
Q2 2017 1,497.00 43.00 - 45.00
Q3 2017 1,446.00 154.00 - 52.00
Q4 2017 1,772.00 121.00 - 107.00
Q1 2018 1,487.00 61.00 - 51.00
Q2 2018 1,596.00 35.00 - 63.00
Q3 2018 1,667.00 158.00 - 107.00
Q4 2018 1,873.00 118.00 - 146.00
Q1 2019 1,723.00 66.00 - 98.00
Q3 2019 1,914.00 170.00 135.00 32.00
Q4 2019 2,149.00 93.00 120.20 32.50
Q1 2020 2,071.00 77.00 148.00 44.00
Q2 2020 1,780.00 44.00 520.00 30.00
Q3 2020 1,804.00 66.00 145.00 23.00
Q4 2020 2,089.00 38.00 404.00 23.00
Q1 2021 2,276.00 40.00 193.00 21.00
Q2 2021 1,811.00 28.00 150.00 27.00
Q3 2021 1,868.00 78.00 255.00 23.00
Q4 2021 2,038.00 46.00 192.00 42.00
Q1 2022 2,012.00 69.00 181.00 25.00
Q2 2022 1,778.00 45.00 165.00 22.00
Q3 2022 2,003.00 115.00 371.00 28.00
Q4 2022 1,988.00 68.00 474.00 47.00
Q1 2023 1,950.00 64.00 665.00 39.00
Q2 2023 1,944.00 41.00 422.00 28.00

Analysts Estimates (Million)

Item Q2 2023 (e) Q2 2023 (a) Change‬
Average 182.03 155.78 (14.4 %)

Estimates vs Actual (Million)

Item Q2 2023 (e) Q2 2023 (a) Change
Al Rajhi Capital 168.00 155.78 (7.3) %
AlJazira Capital 172.10 155.78 (9.5) %
U-Capital 177.70 155.78 (12.3) %
SNB Capital 180.00 155.78 (13.5) %
Riyad Capital 189.00 155.78 (17.6) %
OSOOL AND BAKHEET 191.40 155.78 (18.6) %
HSBC 196.00 155.78 (20.5) %

Current
Market Cap (M Riyal) 16,104.00
Enterprise Value (EV) (M) 16,059.39
Shares Outstanding ((M)) 1,200.00
EPS ( Riyal) (TTM) 0.79
Book Value (BV) ( Riyal) 1.42
Par Value ( Riyal) 1.00
Adjusted P/E (Last12) 17.05
P/E (TTM) 17.05
Price/book 9.42
Return on Average Assets (%) (TTM) 23.0
Return on Average Equity (%) (TTM) 54.2

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