RIYADH, 10 April 2006 — Saudi Research & Marketing Group’s (SRMG) first-quarter net profit this year grew by 120 percent to SR61.1 million compared to the same period last year when the figure was SR27.8 million, the company said in a press statement yesterday.
“This positive results affirm that SRMG is moving ahead to realize its objectives,” said Prince Faisal Bin Salman, chairman of the group. “The results have also showed a 15 percent growth rate in sales in the first quarter compared to the same period last year,” the chairman said.
The report augurs well for the initial public offering (IPO) of the group which began on Saturday. The company is offering some 24 million shares for SR46 per share. Prince Faisal said the flotation of shares would be a “qualitative addition” to the Saudi stock market because of the company’s strong financial standing. He said the purchase of 5.62 percent of SRMG by the General Organization for Social Insurance and the Pension Fund would strengthen investor confidence.
SRMG posted a record net profit of SR181.4 million last year which was the best in the company’s history. There was a 12-percent increase, or SR113.6 million in sales, compared to 2004 when total sales were SR1.063 billion.