The quarterly profit of Bin Dawood Holding Company decreased by 10.68%, to reach 70.24 million riyals in the third quarter of 2021, compared to 78.65 million riyals in the same quarter of the previous year.
According to Arabia Net, and on a quarterly basis, the company's profits decreased by 26.05% in the third quarter, compared to 94.98 million riyals in the second quarter of 2021.
The company said in a statement on Tadawul Saudi Arabia, today, Tuesday, that the decrease in profits is due to an increase in operating expenses by 11.7% on an annual basis during the third quarter of 2021.
Operating expenses amounted to 304.1 million riyals in the third quarter of 2021, compared to 272.2 million riyals in the third quarter of 2020, and the increase is mainly due to the cancellation of government incentives related to the Corona virus pandemic with an increase in recruitment costs resulting from strengthening the executive management team.
The company clarified that revenues remained unchanged in the third quarter of 2021 compared to the same period in the previous year, as the contribution of sales from stores adjacent to the Two Holy Mosques increased due to the reopening of the mosques. The reception of domestic pilgrims and visitors, and this increase was offset by a decrease in sales from other stores as a result of re-allowing travel outside the Kingdom during the summer vacation season.
The gross profit margin increased by 11.5% compared to the third quarter of 2020, from 356.3 million riyals to 397.3 million riyals, and this significant increase is attributed to the efficiency of procurement processes and accurate management of inventory.
The company's profits decreased in the first nine months of 2021 by 41.75% to 227.34 million riyals, compared to 390.3 million riyals in the same period of 2020.
