Fawaz Alhokair’s Q2 FY19 profit misses estimate: Al Rajhi Cap

Fawaz Abdulaziz Alhokair Co.’s Q2 FY19 net profit of SAR 10 million fell short of Al Rajhi Capital’s and consensus estimates of SAR 30 million and SAR 46 million respectively, the brokerage firm said in an earnings review on Sunday.

Revenue for Q2 FY19 declined to SAR 1.273 billion (-15 percent year-on-year), below Al Rajhi Capital’s estimate of SAR 1.458 billion, likely impacted by lower number of stores and continued pressure on like-for-like (LFL) sales in the Kingdom.

“In the near-term, its top-line is expected to remain under pressure on the back of weak consumer sentiments amid changing consumption basket and reduced customer base (reduction in expat population),” Al Rajhi Capital added, while remaining Neutral on the stock.