Fawaz Alhokair Q3 net profit falls, misses forecasts
today Jan 20, 2015
DUBAI, United Arab Emirates - Saudi Arabia retailer Fawaz Abdulaziz Alhokair Co reported a 20.3 percent fall in third-quarter profit on Tuesday, missing analyst estimates, blaming seasonal factors.
The company made a net profit of 106.2 million riyals ($28.3 million) in the three months to Dec. 31, down from 133.3 million riyals in the year-earlier period, according to a bourse filing. Alhokair's financial year starts on April 1.
Three analysts polled by Reuters had on average forecast the company would make a quarterly profit of 144.7 million riyals.
The profit fall came despite a 19 percent increase in turnover to 1.55 billion riyals during the quarter.
The company said the decline in net profit was due to lower sales linked to the Haj religious holiday taking place during the second quarter of 2014, rather than the third quarter during the year before, which reduced the number of high-margin goods it sold.
1 riyal = $ /£0.16
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