Saudi Jarir Q1 profit rises 10%

Higher sales spurred Saudi-based office supplies and electronics retailer Jarir Marketing's net profit by 10 per cent in the first-quarter, putting pressure on the firm to meet a higher growth forecast for 2010.

Electronics sales have been driving growth but these products carry lower margins than the other products that Jarir sells, such as books and office supplies, two brokerage companies said commenting the results.

Jarir made SR118 million (Dh116m, $31.5m) in the three months to end-March compared to SR107m a year earlier, Jarir said in a statement.

Shares in the company made intraday gains of up to 3.7 per cent after the announcement. In February, Jarir said it expects new stores to boost its net profit by at least 15 per cent in 2010, which is higher than profit growth in 2009.

"These results bode well for the company's overall... 2010 results," said Laurent-Patrick Gally, of Dubai-based Shuaa Capital.

Jarir said Q1 sales rose by 20 per cent to SR795m led mainly by higher smart phone sales and a rise in the number of stores to 28 from 24 a year earlier.

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