BinDawood Holding Co. announces its Interim Financial results for the Period Ending on 2026-03-31 ( Three Months )

• Total Revenue amounted to SAR 1,811.4 million with growth of 8.2% on comparison with the first quarter of the year 2025 which amounted to SAR 1,674.4 million, due to the continued strong operational performance and the expansion of the group business through its different sectors.

Key Reasons for Growth:

1. Retail

BinDawood and Danube (Grocery Stores):

Growth driven by:

• Strengthened customer engagement using personalized data and rewards.

• Drove repeat visits and higher spending through loyalty-focused campaigns.

• Expanded footprint through new store openings and the successful scaling of 2025 locations.

Zahrat Al Rawdah (Pharma Stores):

Growth driven by:

• the successful "store-within-a-store" model, standalone expansions and consistent performance from existing locations.

• Impact reflecting three months of revenue in Q1 2026 versus only two months in Q1 2025, following the retail pharmacy acquisition completed in February 2025.

• Introduced a pharmacy loyalty program to attract new and retain existing customers through personalized product offerings.

2. Distribution

Growth driven by:

• Captured strong performance through the integration of Toy Triangle and the addition of new brands such as Samsung and renowned food brands.

• Improved supply chain efficiency and route-to-market speed to effectively serve both internal and external demand.

3. Tech

Growth driven by:

• Primarily strong performance resulting from Ykone’s strategic acquisitions of Mirror Mirror and Barcode, alongside steady contributions from International Applications Trading Company.

Gross profit remained strong at SAR 580.1 million, with the gross profit margin improving to 32% compared to 31.6% during the same period of the previous year, reflecting improved revenue quality and continued strong operational performance of the Group.

Growth driven by:

• Consistent growth in business volume across all sectors.

• Diversification of revenue streams and an improved product mix.

• Enhanced supplier investments and optimal recognition of commercial incentives and targets.

• Continued improvement in procurement and supply chain efficiency to safeguard the Group's core profitability.

Operating Expenses:

Operating expenses amounted to SAR 471.7 million during the first quarter of 2026, compared to SAR 438.5 million for the same period of the previous year, in parallel with the company’s continued implementation of its expansion plans and investment in operational and technical infrastructure.

Contributing Factors:

• Full impact of operating expenses for new branches and pharmacies.

• Inclusion of Toy Triangle Company's expenses within the distribution sector.

• Continued investment in digital platforms, technological infrastructure and modern operations centers.

• Expansion of operational and technological projects supporting future growth.

Operating profit

Operating profit increased by 18.8% to SAR 110.2 million compared to SAR 92.8 million in the first quarter of 2025, driven by continued revenue growth, improved operational efficiency and enhanced profit margins across key sectors.

The company also benefited from:

• Operational integration across its retail, pharma, distribution and technology sectors.

• Improved performance in the technology sector and increased efficiency in digital operations.

• Maintaining a stable cost-to-sales ratio in its core retail sector despite continued expansion.

Net Profit:

Net profit rose by 8.4% to SAR 71.3 million compared to SAR 65.7 million in the first quarter of 2025, supported by continued revenue growth and improved core operating performance of the group.

The results were also affected by higher financing costs associated with funding expansion plans and strategic acquisitions, including expanding lease contracts and the acquisition of Zahrat Al Rawda Company, in addition to directing part of the cash reserves to support future growth and expansion opportunities.

The company continues to implement its strategy aimed at enhancing the diversification of income sources and raising the quality of profits through investment in the retail, pharmacy, distribution and technology sectors, in order to support sustainable growth and maximize value for shareholders.

• Total Revenue: Achieved SAR 1,811.4 million

• Q1 Growth: Represents an 8.5% rise over Q4 2025 (SAR 1,669.8 million)

Key Reasons for Growth:

1. Retail

BinDawood and Danube (Grocery Stores):

Growth driven by:

• Capitalized on a favorable seasonal shift in Q1 2026, driving higher customer traffic across our store network.

• Boosted sales through targeted promotions and personalized loyalty offerings that enhanced customer attraction and retention.

• Achieved growth through new store openings and the first full-quarter contribution from locations launched in Q4 2025.

Zahrat Al Rawdah (Pharma Stores):

Growth driven by:

• Realizing a significant step-change through the addition of seven pharmacies and the full-period contribution of integrated locations.

• Leveraging strong momentum and existing customer loyalty from the core grocery operation to accelerate network growth.

2. Distribution

Growth driven by:

• Increased sales through the integration of Toy Triangle, the addition of new brands, and favorable seasonal shifts in Q1 2026.

• Improved margins and performance through better sourcing and more agile routes to market.

• Enhanced efficiency by better aligning internal supply with external market demand.

3. Tech

Growth driven by:

• Revenue growth in IACO—driven by higher transaction volumes, new fulfillment centers, and third-party delivery partnerships—was offset by a seasonal decline in Ykone.

• As per typical annual cycles, the majority of Ykone’s activity and revenue traditionally shifts toward the second half of the year.

Slight decline of 0.5% to SAR 580.1 million, with margins decreasing from 34.9% to 32%.

Volume Drivers:

• Maintaining a near-constant performance level with only a 0.5% variance in gross profit despite drop in Gross Margin. This is due to increase in sales as mentioned above.

Margin Catalysts:

• The 2.9% decline in gross margin is due to the timing of supplier targets and rebates, which are standard in the industry and were fully recognized in Q4 2025.

• This reduction was partially mitigated by ongoing improvements in operational efficiency and supply chain optimization.

Operating Expenses:

Totaled SAR 471.7 million in Q1 2026, rising from SAR 436.8 million in Q4 2025.

Contributing Factors:

• Increased due to the launch of several new locations during the current quarter by retail segment.

• Results reflect the first full three months of costs for the pharmacy and grocery stores opened in Q4 2025.

• Incurred one-time costs related to the acquisition of Vaza Food Company, which is on track to be completed in Q2 2026.

Operating Profit:

Declined by 25% to SAR 110.2 million (Q4 2025: SAR 146.9 million).

Contributing Factors:

• Reduction in gross margin as explained above.

• Rising operational costs as explained above.

Net Profit:

Decreased by 37.3% to SAR 71.3 million (Q4 2025: SAR 113.6 million).

Contributing Factors:

• Decline in results reflecting lower operating profit compared to the previous period

• Increased financial pressure from borrowing costs associated with new lease agreements, in addition to finance costs related to external borrowing for the retail pharmacy acquisition.

• Increase in the non-current assets due to the increase in right-of-use assets.

• Current assets rose slightly, driven by higher inventories and receivables.

• Current liabilities increased mainly due to increase in accounts payable, Zakat payable and due to related parties.

• Non-current liabilities increased due to increase in lease liabilities and employee’s end of service liability.

• Total equity improved due to improvement of retained earnings.