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Muhammad Alagil, Chairman of Jarir Marketing Co.
Muhammad Alagil, Chairman of Jarir Marketing Co. (JMC), said the supply chain crisis reflected in low product supply and insufficiency of customer products, especially in the electronics sector.
Alagil told Argaam over a phone call that sales of computers and tablets decreased by 12% in 2021 compared to a year before, while the school, stationery and office materials sector declined by 11% year-on-year (YoY).
He added that the expenditures were distributed among new sectors such as tourism and entertainment, which in turn affected other sectors.
Some global producers forecast the supply chain crisis to end after H1 2022, but most of them do not know when it will end, and therefore are not ready to commit to delivering specific quantities.
Alagil expects the company's business to grow in 2022 in case of improvement in supply chains, availability of electronics amid return of schools, noting that JMC seeks to open five to six new stores in 2022.
The company will add Al Rajhi Bank as a new offer for customers for sale in installments through its branches, the Chairman said, indicating that JMC is awaiting the approval of Saudi Central Bank (SAMA).
JMC reported a net profit after Zakat and tax of SAR 992 million for 2021, a marginal decline from SAR 1.003 billion a year earlier.
In Q4 2021, the company’s net profit after Zakat and tax dropped 9% YoY to SAR 262.5 million, according to data available with Argaam.
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