Jarir Marketing Co.’s fourth quarter net profit of SAR 215 million, up 3.5 percent year-on-year (YoY), surpassed Albilad Capital’s expectation of SAR 197 million, and the analysts’ consensus of SAR 201 million, the financial services company said in an earnings review.
The effort, however, fell by 2.14 percent in comparison with the third quarter of 2016, thus the full-year net income hit SAR 738 million, sliding 11 percent from 2015, it added.
Albilad Capital downgraded Jarir Marketing to “neutral” from “overweight”, and cut the fair value estimates for the share to SAR 117 from SAR 120.
The kingdom’s decision to cut bonuses of state employee and impose fees on relatives of foreign workers will negatively impact Jarir’s sales going forward, it added. The company will also pay additional cost for the higher energy prices and higher cost of hiring expatriate workers starting 2018, the firm said.
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