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Fawaz Alhokair Q4 profit slumps

RIYADH, April 21, 2016

Saudi Arabian retailer Fawaz Abdulaziz Alhokair Co missed analysts' estimates as it reported a 98 percent fall in fourth-quarter net profit on Thursday after its operations made losses and total group sales fell.

The company made a net profit of SR3.17 million ($845,626.48) in the three months to March 31, down from SR201.74 million in the year-earlier period, according to a bourse filing. Alhokair's financial year starts on April 1.

Three analysts polled by Reuters had on average forecast Alhokair would make a quarterly profit of SR160.16 million.

Alhokair, which owns franchise rights for brands including Mango, Zara and Banana Republic in the Middle East, said its quarterly net profit from its domestic business was SR92 million, but its foreign operations made a loss of SR89 million.

Quarterly sales fell 3.2 percent year-on-year to SR1.56 billion.

Saudi retailers have struggled this year as a protracted slump in oil prices put government and consumer spending under pressure, while a two-month salary bump to government employees which boosted retail sales in early 2015 wasn't repeated.

Jarir Marketing, another large retailer in the kingdom, posted a 29.5 percent drop in first-quarter net profit on April 10, the same day as major food and dairy firm Almarai warned of challenging market conditions as it posted flat year-on-year net profit growth.

Alhokair's annual profit for the 12 months to March 31 was SR615.8 million, down 23 percent from a year earlier. - Reuters




Tags: Saudi | profit | Alhokair |

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