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Jarir Marketing Co.’s (JMC) Q3 2020 results were hit by the resumption of distance learning and the delayed rollout of the next-generation iPhone, company chairman Muhammad Alagil, told Argaam in an exclusive.
The wholesale segment witnessed a drop of nearly 60%, on lower sales of school supplies and stationery.
Moreover, the delayed announcement on the resumption of remote learning, which was issued only two weeks before the new semester, had the biggest impact on the wholesale and retail segments’ sales, as the company braced for the new semester with new products.
“Jarir will have a huge stock of school supplies and stationery, but the computers’ stock is acceptable,” Alagil added.
Meanwhile, the delay in the release of the new iPhone version, which is usually announced in September, until Q4 2020 had a major impact on sales.
Jarir delayed the opening of new four showrooms from Q2 2020 to the end of the third quarter due to the COVID-19 pandemic, but this had a marginal impact on the financial results.
The company is expected to post positive financials for Q4 2020, boosted by growing demand for the new iPhone, Alagil concluded.
Jarir reported a 16% decline year-on-year (YoY) in Q3 2020 net profit to SAR 255.2 million, Argaam reported.
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