Jarir Marketing Company, one of the leading retailers in Saudi Arabia and the Gulf region, announced significant growth in its net profit during the fourth quarter of 2025, recording a 12.5% year-on-year increase. According to the official statement published by the company on the Saudi Stock Exchange (Tadawul) website, net profit reached SAR 309.8 million, compared to SAR 275.3 million in the same period of 2024.
General context and performance of the retail sector:
Jarir's results are an important indicator of the health of the retail sector and consumer spending in the Kingdom, which is a key pillar of the economic diversification strategy within Saudi Vision 2030. The company has a strong market presence through a wide network of showrooms offering a diverse range of products including office and school supplies, books, and consumer electronics, making its performance a mirror of consumer trends and purchasing power.
Analysis of the financial performance for the fourth quarter:
The company attributed this positive growth in net profit primarily to a 14.2% increase in gross profit, a direct result of higher sales. However, net profit growth (12.5%) was lower than gross profit growth, which the company attributed to higher selling, marketing, and general and administrative expenses, as well as a decrease in other income. This discrepancy reflects the company's ongoing investments in strengthening its marketing activities and expanding its operations to maintain its competitive position.
Sales mix challenges on a quarterly basis:
Despite strong year-on-year performance, the results showed a decline in net profit compared to the third quarter of the same year. Jarir explained that this was due to a 7.6% quarter-on-quarter decrease in gross profit. Although sales increased by 9.3% in the fourth quarter, a negative shift in the sales mix impacted profitability. The fourth quarter saw increased demand for lower-margin segments such as smartphones and electronics, compared to the third quarter, which benefited from the back-to-school season, characterized by high sales of high-margin school and office supplies.
A look at the year's overall performance and its impact:
Throughout 2025, the company successfully increased its net profit by 7.7%, driven by a 6.9% rise in gross profit thanks to year-on-year sales growth. These results demonstrate Jarir's ability to adapt to market changes and achieve sustainable growth, reinforcing investor confidence in its operational performance and effective cost management. These profits are expected to positively impact the company's share price on Tadawul and underscore the resilience of its business model in the face of economic challenges and evolving consumption patterns.
