Riyadh – Mubasher: Jarir Marketing Co. reported a 6.7% year-on-year net profit increase for the first quarter of 2019, supported by robust top-line growth, according to a report released by NCB Capital (NCBC) on Sunday.

Jarir’s net profits, after zakat and taxes, amounted to SAR 233.7 million in Q1-19, broadly in line with the NCBC and consensus estimates of SAR 249 million and SAR 235 million, respectively, the report noted.

The profit increase was ascribed to the 18% year-on-year top-line growth on the back of store expansion and like-for-like (LFL) growth, offsetting higher operating expenses.

Operating expenses soared 119% year-on-year to SAR 48 million in Q1-19, exceeding NCBC’s estimate of SAR 39 million.  

NCB Capital set the price target (PT) of Jarir Marketing at SAR 157.8 a share, with a "neutral" recommendation.