Jarir Marketing Company's profits decreased by 16.34% to reach 255.2 million riyals in the third quarter of this year, compared to 305 million riyals during the same period last year.
p>
According to Arabiya Net, the company stated in a statement that its profits during the first nine months grew by 1% to 715.3 million riyals.
the company attributed the reasons for the decline during the third quarter to:
- Decreased sales of many retail departments, especially the departments of school and office supplies and smartphones, in addition to a decrease in most wholesale departments; As the sales of school and office supplies departments and wholesale sections were negatively affected by the precautionary measure taken by the competent authorities to transfer the study pattern to distance education to limit the spread of the Coronavirus pandemic.
- Sales were also affected overall by the application of the increase in the value-added tax rate from 5% to 15%, which started with the beginning of the current quarter.
- The delay in the launch of the new version of the iPhone has also contributed to a decrease in smartphone sales compared to the same quarter of the previous year.
- The significant negative impact on the back-to-school season has resulted in a relative decrease in gross profit margin due to the negative change in sales, which partially contributed to a greater decrease in net profit From the decrease in sales.
