Jarir’s Q4 profit to rise 11%, says Riyad Cap

Jarir Marketing Co. is expected to report a net profit of SAR 239 million in Q4 2017, up 11 percent year-on-year (YoY), Riyad Capital said in a note to investors.

Revenue for Q4 is expected to rise 2 percent YoY to SAR 1.8 billion, driven by higher consumer spending on smartphones, laptops and other electronic devices in December, ahead of the implementation of value-added tax this month.

However, Jarir’s sales may decline in Q1 2018, due to VAT and higher energy prices, the report said.

The bookstore operator opened five new showrooms in 2017, bringing up the total number of branches to 50.

Riyad Capital reiterated its neutral rating on the stock, with a target price of SAR 140.