Net income – SAR27 million, +5% Y-o-Y, N/M Q-o-Q, +7% versus EFGe Gross profit – SAR99 million, 0% Y-o-Y, +64% Q-o-Q, -3% versus EFGe Net operating loss – SAR22 million, -11% Y-o-Y, N/M Q-o-Q, -14% versus EFGe   Shaker 1Q2016 earnings was up 5% Y-o-Y, broadly in line with our forecast (+7%). The company cited that the increase in earnings was driven mainly by i) higher income from associate; and ii) lower financing expenses. Revenue dropped 7% Y-o-Y, missing our estimate by 11%; however, gross profit was flat Y-o-Y (in line, -3%) on improving gross profit margin (+120 bps Y-o-Y). EBIT, on the other hand, fell 11% Y-o-Y (-14% versus our estimate), driven by 4% increase in SG&A, mainly marketing expenses likely associated with the current restructuring phase the company is undergoing. EBIT margin was flat Y-o-Y at 5.5%. (Earnings release, Tarek El-Shawarby)