This report provides a comprehensive fundamental financial analysis of Jarir Marketing Company’s operational and financial performance from 2021 through 2025, with particular emphasis on the key developments in 2025. It reviews the company’s revenue growth at a compound annual rate of 5.8% to SAR 11.37 billion, compared with slower net profit growth of 1.4% to SAR 1.05 billion. It also examines margin compression and the decline in net profit margin from 10.91% to 9.23% amid a higher operating expense burden. The report explains that the return on equity peak of 59.5% was driven by an increase in asset turnover and greater financial leverage, which offset margin erosion. It also considers working capital management efficiency, with the cash conversion cycle falling to 20 days, and free cash flow surging to SAR 1.37 billion, covering generous cash dividends of SAR 1.03 billion by 1.33 times. The report concludes with an assessment of earnings quality and the risks posed to this defensive business model by any future slowdown in sales momentum.
Team:
- Arwa Alhuwaiti - Financial Analyst @Arwa Alhuwaiti
- Rimas Almashali - Financial Analyst @Rimas Almashali
- Abeer Altuwaijri - Financial Analyst @Abeer Altuwaijri
- Ghadah Alwallan - Financial Analyst @Ghadah Alwallan
- Mohammad Alghaihab - Financial Analyst @Mohammad Alghaihab
Supervision:
- Hamad Alsaeed - Financial and Economic Analyst @Hamad Alsaeed