7 days ago
Q2 2025 topline, margin growth came despite expansion cost pressures: BinDawood Holding CEO
Ahmad Abdulrazzaq BinDawood, CEO of BinDawood Holding Co., said that the expenses incurred by the company during Q2 2025 represent a strategic investment that aims to boost sustainable growth in the long term.
The robust performance delivered by Zahrat Al-Rawdah Pharmacies in terms of revenue and margins came backed by expansion in standalone branches and merger of branches into Danube and BinDawood stores, the CEO told Argaam in an interview.
He further stated that the company's Q2 2025 financial results reflect the strength of its business model and its ability to achieve sustainable growth, despite the decline in net profits.
The company's revenues grew by 4%, amid higher gross profit margin. The decline in net profit was primarily due to increased operating expenses resulting from strategic expansion, especially following the acquisition of Zahrat Al Rawdah Pharmacies and the opening of new stores, in addition to higher financing costs, according to the top executive.
He stressed that, in light of the growing competition in the Saudi retail market, BinDawood is focusing on improving its customer experience, expanding its digital presence, and investing in sectors with higher profit margins, in addition to expanding the number of stores and branches.
BinDawood also expects continued robust performance in Q3 2025, underpinned by the back-to-school season and the fruits of investments made in the first half of the year in the pharmacies, distribution, and IT segments, with a focus on increasing cost efficiency and improving margins to ensure sustainable results.
