Jarir sees Q3 profit up 15pc
Jeddah, July 6, 2010
Saudi office supplies and electronics retailer Jarir Marketing said on Tuesday it expects third-quarter net profit to rise by 15 per cent after posting a 4 per cent rise in the second quarter.
'The school season will fall in the third quarter so we expect very good sales in both retail and whole sales.... We expect it to be more than 15 per cent,' chief financial officer Mohamed Amin said.
The firm also expects 'reasonable growth' for its fourth quarter earnings due to promotion activities, Amin told Reuters, declining to be more specific.
Jarir made SR75 million ($20 million) in the three months ending June 30 compared to SR72 million in the same period a year earlier, according to a bourse statement.
Amin said a gains of SR2 million from an interest rate swap deal had driven second-quarter profit.
Operating profit declined 5 percent in the second quarter to SR75 million from SR79 million a year earlier, Jariir said, citing a lower profitability of electronic items and lower sales in foreign branches.
Electronic sales tend to drive the firm's growth but analysts have said that that these products carry lower margins than the other products that Jarir sells, such as books and office supplies.
Earlier this year Jarir said it expected its net profit to increase by at least 15 per cent, higher than its profit growth for 2009, as it opens new planned to open new stores.
Shares in Jarir were down 1 per cent by 0933 GMT. – Reuters
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