EUR 236.14 For Business Accounts Only

Profits are melting like an ice in the sun

Q3 2016:
Revenues increased by 4.34% to SAR5.846bn vs. SAR5.604bn, yoy. The EBIT slumped by 36.99% to SAR311.278m following an important increase of operating costs (+8.29%). Therefore, the operating margin reached 5.32% vs. 6.63% a year ago. The net profit dropped sharply by 53.32% to SAR173.438m.
By the end of September 2016:
Revenues witnessed a near-stagnation (-0.55%) to SAR18.759bn vs. SAR18.863bn by the end of September 2015. The EBIT fell by 28.16% to SAR1.109bn vs. SAR1.407bn, a year earlier. Thus, the operating margin reached 5.39% vs. 7.46%, a year ago. The net profit dropped by 59.81% to SAR513.022m vs. SAR1.276bn, yoy. The net margin slumped to only 2.73% vs. 6.76%, a year earlier. By segment, the retail activity posted a slight improvement (+2.52%) of its revenues. However, the net profit was in negative territory for the third quarter in a row amounting to SAR-232.564m because of a higher capex related to the opening of new Panda stores. The food segment posted a decline of its revenues (-4.11%) amounting to SAR8.639bn vs. SAR9.4009bn, yoy. Its net profit was down by 4.49%, reaching SAR429.1m.
By country, the revenues recorded in Saudi Arabia increased by 3.26% to SAR13.498bn vs. SAR13.072bn during the same period a year ago. Saudi Arabia’s contribution is more and more important reaching 71.96% vs. 69.29%, a year ago. On the other hand, the firm’s international activities seem to be losing ground: Revenues conducted in Iran slumped by 9.76%. Also, the activity in Egypt recorded a drop by -4.03%.