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26-Jul-2016

SACO 2Q16 earnings flattish Y-o-Y, as higher costs offset revenue growth

Saudi Company for Hardware (SACO) [4008.SE] reported flattish Y-o-Y earnings of SAR36.3mn in 2Q16 (+1% Y-o-Y), mainly due to higher revenue from new store openings. Revenue for the quarter was also flattish coming in at SAR351.5mn (+0.6% Y-o-Y). Gross profit was down 3% to SAR70.9 with gross margin narrowing c70bps Y-o-Y to 20.2%. Meanwhile, operating profit was also flattish (+2% Y-o-Y) at SAR39mn, with EBIT margin up a slight c20bps to 11.1%. (Tadawul)

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