Jarir Marketing Company recorded a 9% decrease in profits for the second quarter of 2021 to reach 189.2 million riyals, compared to more than 208 million riyals in the same quarter of the previous year.
According to Arabiya Net, the company recorded a 29% decline compared to the first quarter of this year, in which it achieved profits of more than 267 million riyals.
In the first half, Jarir's profits amounted to about 457 million riyals, a decline of 0.7% from the same period in 2020, in which the net profit amounted to 460 million riyals.< /p>
The company said in a statement that the reason for the decline in profits for the current quarter compared to the second quarter of 2020, is due to the significant decline in online sales compared to the same quarter of the previous year, which It witnessed exceptional performance during the ban and precautionary measures imposed by the Covid-19 pandemic (particularly the computer department as a result of distance education and work), which was also supported by exceptional sales at the end of the same quarter of the previous year prior to the increase in the value-added tax rate.
Despite the decrease in sales by 15.1%, the net profit decreased by 9.2%, and the reason for this is due to the decrease in general and administrative expenses, which included general and administrative expenses for the same quarter of The previous year, the company supported the Health Endowment Fund at the Ministry of Health with an amount of 20 million riyals, also due to a decrease in selling and marketing expenses and an increase in other revenues.
The decline compared to the previous quarter is due to the decline in sales, especially in the smartphone and computer divisions. The performance in this quarter compared to the previous quarter was affected by the quiet sales during the last Ramadan month.
The reason for the decrease in net profit during the first half year compared to the same period of the previous year, is the decrease in sales in the second quarter, which led to a decrease in sales for the period by 3.6 percent. % compared to the same period of the previous year.
