Jarir has zero loans, to maintain dividends: Chairman

Muhammad Alagil, Chairman of Jarir Marketing Co.

Jarir Marketing Co.’s Q3 2023 results were buoyed by the company’s product mix, higher tablet sales, and growth in other sections, such as services and online, Chairman Muhammad Alagil told CNBC Arabia.
 

The company’s sales abroad account for less than 15% of total sales.
 

Jarir has currently almost zero loans, but these loans might increase for a short term seasonally. It recorded zero loans as of Q3 2023.
 

The company will maintain very high dividends, after utilizing the required cash, Alagil added.

The decline witnessed by school and office supplies section is common, due to shifting towards digitalization. The smart TV, additional services and video game sections see solid growth, Alagil explained.

Jarir increased its marketing investments to gain a larger market share, as acquiring new customers has become costlier than earlier.

On the other hand, the Chairman said Jarir’s stock witnessed strong liquidity after the nominal value reduction. Investors might accumulate the stock after the third-quarter results.

Jarir posted an 8% rise year-on-year in Q3 2023 bottom line to SAR 296.3 million, bringing the nine-month earnings slightly lower at SAR 699.9 million, Argaam reported.