Riyadh – Mubasehr: Jarir Marketing Company is expected to boost its revenue growth on the back of an increase in market share through store expansion and higher online sales, according to a report released by Aljazira Capital on Sunday.
The research firm projected “the margins to remain under pressure due to higher costs resulting from employment of Saudis, and higher selling and marketing expenses as the company aims to increase its market share.”
In addition, online sales are forecast to contribute 5% to overall sales in fiscal year 2019, the report added.
Aljazira Capital maintained its “neutral” recommendation on Jarir’s stock with a target price (TP) at SAR 168.0 a share.
Jarir Marketing reported a 6.66% year-on-year net profit growth, logging SAR 233.7 million in Q1-19, in line with Aljazira Capital’s and market consensus estimates of SAR 225.4 million and SAR 235.4 million, respectively.
Meanwhile, revenues surged by 18% year-on-year in Q1-19, supported by higher electronics sales and increased number of stores.
“The rise in store count coupled with adaption to consumer preferences should enable Jarir to increase its market share in the near future,” the research firm added.
