Bin Dawood’s profits increased by 15% to 40.2 million riyals in the third quarter
Bin Dawood Holding Company’s profits increased in the third quarter of 2025 by 14.9% to 40.2 million riyals, compared to 34.9 million riyals in the same quarter of last year.
According to the company’s statement on the website "Saudi Arabia trading"Total profit increased to 520.7 million riyals in the third quarter of 2025, supported by increased revenues and improved margins as a result of the following:
– Obtaining greater support from suppliers in the retail sector.
– Increasing profit margins in the pharmacy and distribution sectors.
– The continued growth of Aikon Company, which contributed to improving the profit margin.
• Operating expenses increased to 446.7 million riyals in the third quarter of 2025 (compared to 395.9 million riyals in the third quarter of 2024).
• The increase in expenses was the result of the following:
– Consolidation of pharmacy and distribution businesses.
– The full impact of the period of operation of the new stores since the fourth quarter of 2024 AD and the opening of new stores in 2025 AD.
The net profit amounted to 40.2 million riyals (compared to 35 million riyals in the third quarter of the year 2024 AD).
– The growth was supported by sectors with higher profit margins, Better supplier income, and a strong performance for Econ.
– Partially offset by higher operational costs and financing expenses related to the acquisition of the pharmacy sector.
Net profit on a quarterly basis decreased slightly by 2.4% to reach 520.7 million riyals in the third quarter of 2025 AD compared to 533.3 million riyals in the second quarter of 2025 AD, as a result of the following:
– The effect of seasonal fluctuations At margin levels.
– Less favorable product mix with increased contribution of low-margin categories.
• Operating expenses:
• A slight decrease of 446.7 million riyals in the third quarter of 2025, compared to 453.9 million riyals in the second quarter of 2025.
• This decrease resulted from:
– Improved operational cost efficiency.
– Better control of expenses across key business segments.
• It decreased to 40.2 million riyals in the third quarter of the year 2025, compared to 50.5 million riyals in the second quarter of the same year.
• The decrease was due to:
– Lower gross profit as a result of seasonal margin pressure.
– Slight increase in financing costs related to recent capital investments.
– Higher rental costs resulting from the opening of new stores.
Gross profit rose to 1,582.7 million riyals in the first nine months of 2025, an increase of 14.6% year-on-year, with margins improving to 33.8% compared to 32.5% last year, despite market challenges.
• The growth was supported by the following:
– Higher overall revenues.
– Greater support from suppliers in the retail sector.
– Stronger margins in the pharmacy and distribution sectors.
– Continuing increased margins in the IT sector
• Operating expenses:
• It rose to 1,339.1 million riyals in the first nine months of the year 2025 AD (compared to 1,146.9 million riyals in the same period of the year 2024 AD).
The increase was mainly due to:
– Consolidation of the pharmacy and distribution business in the company’s results.
– The full impact of the operating costs of the stores that were opened in the year 2024 AD and the new ones that were opened in the year 2025 AD.
– Merger of pharmacies within Bin Dawood and Danube stores.
– Increased costs related to employees, facilities, and logistics services.
• Net profit decreased to 156.4 million riyals in the first nine months of 2025 (compared to 170.6 million riyals in 2024).
• The decrease was due to:
– Higher operational costs.
– Decreased financing income.
– Increased financing costs related to the acquisition of the pharmacy sector.
Dividend Distribution
The Board of Directors of Bin Dawood Holding Company decided yesterday to distribute cash dividends to shareholders for the first half of the fiscal year 2025.
The company said: The total amount distributed is 45.64 million riyals, while the number of shares entitled to dividends is 1,141,000,000 shares.
She added that the share of the distribution is 0.04 riyals, while the distribution ratio to the nominal value of the share is 4%.
The eligibility date will be next December 4, while the distribution date will be on the 18th of the same month.
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