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Jarir Marketing, one of Saudi Arabia’s largest retailers, has announced a cash dividend worth 252 million riyals ($67.19 million) despite recent slowdown in sales.
The kingdom’s major retailer specialising in electronics, as well as school and office supplies, said on Wednesday that the payout will apply to 120 million shares, with the dividend per share at 2.10.
The dividend will be distributed on November 18, 2020.
“The eligibility of dividends shall be for the shareholders who own shares on maturity [ Monday, November 9, 2020) and registered with the Securities Depository Centre Company at the end of the second trading day following the date of maturity,” the stationery and electronics retailer said in a bourse filing.
The retailer, whose total assets stood at 1.9 billion riyals as of June 30, 2020, has recently seen a decline in sales as a result of stay-at-home orders, coupled with a significant increase in value-added tax (VAT).
Its sales/revenues for the third quarter of the year posted a 9.4 percent year-on-year decline to 2 billion riyals, while its net profit dropped 16.3 percent to 255 million riyals during the same period.
The company said sales have dropped at its retail and wholesale units.
“Retail sales of school and office supplies, as well as wholesale sections, were all negatively affected by the precautionary measure taken by the competent authorities to shift the traditional education format to remote learning, to control the spread of coronavirus pandemic,” the retailer said
“Sales generally were also affected by the implementation of VAT rate increase from 5 percent to 15 percent,” it added.
(Writing by Cleofe Maceda; editing by Seban Scaria)
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© ZAWYA 2020
