Top-line expands 5% YoY, matches our estimate
BinDawood Holding’s revenue in 1Q22 grew 5% YoY to SAR 1,175.2mn, matching our estimate of SAR 1,176.0mn. Return of the seasons like Sha’ban and Back to School, and an improvement in the business of Haramain stores, post the removal of restrictions on Umrah pilgrimage aided the top-line growth.
The gross profit comes in line, but operating profit falls short…
On the back of an in-line revenue, gross profit also came in the ballpark of our estimate (-3% variance), as it rose 3% YoY (+43% QoQ). Operating profit, however, declined 16% YoY and missed our estimate by 27%, as the stores opened in the prior-year period are yet to be ramped up to their optimum potential.
…thereby impacting bottom-line performance
As a result, a net profit of SAR 65.5mn also came in lower than our expectation of SAR 95.0mn, though it rose 5% YoY helped by the company getting a rental relief of SAR 17.1mn.