Saudi’s Fawaz Abdulaziz Alhokair Q4 Net Profit Rises 5.7%

Saudi Arabia retailer Fawaz Abdulaziz Alhokair Co reported a 5.7 per cent rise in fourth-quarter profit on Monday as sales increased by a fifth.

The company made a net profit of SAR201.74 million ($53.79 million) in the three months to March 31, up from SAR190.78 million in the year-earlier period, according to a bourse filing. Alhokair’s financial year starts on April 1.

EFG Hermes and NCB Capital forecast a quarterly net profit of SAR190.11 million and SAR179.0 million respectively.

Alhokair said fourth-quarter sales rose 19 per cent to SAR1.61 billion, with customers spending more in its stores following a royal decision earlier this year to grant government employees a bonus of two months’ salary.

But profit growth was crimped by a drop of SAR82.8 million in other income and share of associates, while financial charges increased by SAR14 million.

The company’s full-year net profit was SAR802.95 million, up from SAR771.35 million a year earlier.