Riyadh – Mubasher: Al Rajhi Capital said Saudi Airlines Catering Company's (SACC) net profit of SAR190.7 million came ahead of its estimates of SAR177 million and
above consensus estimates of SAR175 million.
Among its other segments, revenue from Al Fursan lounges increased by +50% y-o-y and SkySales increased (+19% y-o-y) after the company opened several Airport outlets. Gross profit at SAR228.4mn (+24.6% y-o-y) was above our estimate of SAR194.8mn. This beat is attributed mainly to the release of accruals and provisions (in cost of goods sold) of SAR17.6mn as well as in rents and maintenance," said the research firm.
Al Rajhi Capital revised its estimates to reflect the current market conditions, adding it continues to remain Overweight on SACC with a target price of SAR130, with potential upside of 46.9%.
