BinDawood CEO says footfall in stores high despite challenging Q3 2020

The third quarter of 2020 was a tough period for BinDawood Holding Co., but the stores are still witnessing a positive response from customers despite the challenges posed by the COVID-19 crisis, CEO Ahmad BinDawood said in a statement.

The CEO added the company is aware that its business is not immune to COVID-19 impact and the increase in value-added tax (VAT). However, the firm’s trademark brands give it a unique competitive advantage due to the diversity of its customer base and products.

BinDawood attributed the growth in revenue and profit during the first nine months of 2020 to the implementation of a successful strategy, which limited the impact of the higher VAT and lower sales in Makkah and Madinah branches, due to the limits on Hajj and Umrah this year.

According to the statement, the company opened four new branches during the nine-month period in Hail, Riyadh and Khamis Mushait, adding that the fast-moving consumer goods retail segment recorded the best sales compared to the average sales of the other segments.

The Tadawul-listed firm reported a net profit of SAR 78.7 million for Q3 2020, a rise of 37% compared with SAR 124.5 million a year earlier.

The board recommended a 20% cash dividend for the second and third quarters of 2020 at SAR 2 a share, according to data compiled by Argaam.