A decline in the company’s net profit Bin Dawood Holding By 46.27% in 2021, to regarding 240.56 million riyals following zakat and tax, compared to profits of regarding 447.72 million riyals in 2020.
In a statement to Saudi Tadawul, today, Wednesday, the company attributed the decline in profits to a 15% decline in revenues to 4.38 billion riyals in 2021, compared to 5.16 billion riyals in 2020.
She pointed to the decrease in sales of Danube and Bin Dawood stores due to the decrease in store sales in the first half of 2021 when compared to the same period in 2020, as they benefited greatly from the impulsive buying behavior that occurred in response to the closing measures taken to limit the outbreak of the Corona pandemic and precaution before entering a decision The value-added tax will be raised.
She added that the company’s sales continued to be affected as a result of the restrictions imposed on travel movement as part of the precautionary measures to combat the pandemic, which led to a decrease in the number of pilgrims and Umrah pilgrims during the Umrah, Hajj and Ramadan seasons, and restrictions on stores in the regions of Makkah and Madinah, in addition to the failure to implement promotional campaigns such as the return campaign. To schools, end of year and food festivals.
In a separate statement, Bin Dawood Holding Company announced the distribution of cash dividends to shareholders for the second half of 2021, with a total of regarding 74.29 million riyals for 114.3 million shares.
The dividend per share is 0.65 riyals, with a distribution ratio of 6.5% to the nominal value of the share.
The eligibility for profits will be for the shareholders who own shares in the company at the end of trading on Sunday, April 3, 2022, and who are registered in the bank’s shareholders register with the Depository Center Company for Securities (Edaa) at the end of the second trading day following the due date.
The distribution date is April 10, 2022.
For his part, Chief Executive Officer of Rasana Financial, Abdullah Al-Rabadi, said that the business of “Bin Dawood Holding Company” was affected by several factors during the past year.
Al-Rabadi explained in an interview with Al-Arabiya that most of the company’s business is located in Makkah Al-Mukarramah, so it is greatly affected by the Hajj and Umrah activities, explaining that the partial return of activity and the complete lack of return had an impact on the company’s business and revenues.
Al-Rabadi added that the application of the tax was reflected in the results compared to the results of 2020, especially during the first half of 2020, which witnessed an increase in retail sales in light of the outbreak of the Corona pandemic and before the introduction of value-added tax in the Kingdom.
Al-Rabadi expected that the company would recover a large part of its revenues and activity, and return to growth following the return of Hajj and Umrah.
