Source: AlBilad Investment Co.
Abdullah Al Othaim Markets Co. disclosed net income of SAR 36.6 million in Q3 2016 down 1.2% versus SAR 37.1 million in the comparable period of the previous year. As for the nine-month period of 2016, net income dropped 5.6% YoY posting SAR 134 million compared to SAR 142 million in 2015.
Gross profit in Q3 2016 reached SAR 283.1 million surging 27.9% compared to SAR 221.4 million in Q3 2015, thus concluding 9M 2016 at SAR 899.1 million compared to SAR 681.7 million in the same period of last year.
Operating profit slumped by 7.7% YoY in Q3 2016 recording SAR 29.8 compared to SAR 32.3 million in Q3 2015. Accordingly, the nine-month figure hit SAR 131.5 million increasing 5.6% YoY compared to SAR 124.5 million in
The company’s results missed our estimate of SAR 40 million. We expect the company’s sales to reach SAR 7,037 million in FY16 with a bottom line of SAR 225 million, supported by the last quarter of the year that constitutes of the
biggest chunk of net income representing 39% in 2015. Moreover, we expect continuing growth in sales as a result of the defensive nature of the sector and the expansions in the number of outlets the company is going through. It is worth noting that as of the issuance of this report, the number of outlets reached 158 in Saudi Arabia compared to 142 outlets at the beginning of 2016, in addition to the opening of 10 outlets in Egypt during the current year. Thus, we maintain our valuation at SAR 104.4 per share assigning an “Overweight” recommendation.