Saudi retailer posts record profits on expansion

  • Share via facebook
  • Tweet this
  • Bookmark and Share
Saudi shoppers. (Photo for illustrative purposes only)

Saudi shoppers. (Photo for illustrative purposes only)

Saudi retailer Fawaz A AlHokair & Co on Monday posted record profits for the latest quarter as the company entered new markets and opened more stores.

Its net profit for the three months to end of March rose by more than 55 percent to SR 135.87m compared to SR87.3m in the same period last year.

Simon Marshall, the company's CEO, said: "We continued to deliver our global, strategic expansion plan during 2012, and had a very strong finish to the year.

"We delivered record profits, record margin increase, record number of new store openings, entered two new markets and successfully managed the acquisition and integration of Nesk Trading Projects."

Net profit for the 12 months ended March 31 was SR619.69m, an increase of 38.5 percent compared to the same period last year.

"The increase in net profit for the quarter... is due to the increase in the sales for the same stores and the successful opening of new stores, introducing new concepts & brands and the consolidation of the results of the acquired business Nesk trading projects," the company said in a statement.

Last month, a report said Saudi Arabia’s retail sector is set to continue growing despite concerns over wage inflation due to Saudization of jobs.

The NCB Captial report said that expansions through the openings of new stores, margin support from economies of scale, and consolidations of fragmented markets are key drivers of profit growth, but that price-led competition remains a key concern.


Market Performance

Fawaz Abdulaziz Alhokair and Company
1.84 1.05 (%)
Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

Please post responsibly. Commenter Rules

  • No comments yet, be the first!

Enter the words above: Enter the numbers you hear:

All comments are subject to approval before appearing

Further reading

Features & Analysis
Dubai's nightlife bubble: When is it going to burst?

Dubai's nightlife bubble: When is it going to burst?

A new breed of clubs and bars is sprouting in the city, but which...

Chocolate: worth its weight in gold?

Chocolate: worth its weight in gold?

Middle Eastern consumers with a sweet tooth are buying up ever...

Country focus: Lebanon’s start-up success

Country focus: Lebanon’s start-up success

A new-wave of entrepreneurship is helping Lebanon become a hot...

Most Discussed
  • 54
    Three UAE women attacked with hammer at London hotel

    I really feel that Arabian Business.Com should now close this comments page. This should be all about sympathy for the families not what it is/has turned... more

    Wednesday, 16 April 2014 1:06 PM - Adrienne
  • 51
    Why Dubai isn't a plastic city

    What is definitely not a plastic city. The Arabs have a culture dating back to several centuries. 50 years back Dubai was just a fishing village. Today... more

    Tuesday, 8 April 2014 3:49 PM - P. MADHUSUDAN
  • 48
    DMCC boss Ahmed Bin Sulayem entertains Robert Mugabe in Dubai

    @fga ''However today, simply because he decided to dispossess a few white farmers of their land and redistribute to the poorer indigenous blacks'' more

    Sunday, 13 April 2014 3:02 PM - Matt Williams