RIYADH, 21 January 2008 — Saudi Research & Marketing Group (SRMG) posted SR366 million net profits in 2007, a 40 percent increase from SR261 million in the previous year, the preliminary financial results of the company indicated yesterday.
“The growth increased the profitability of the company’s shares by 40 percent, reaching SR4.6 per share,” the official statement said. SRMG sold 30 percent of its Saudi Printing & Packaging Company in the first half of last year in order to strengthen its financial position and expand its activities.
SRMG’s operational profits reached SR230 million in 2007 against SR254 million a year ago. However, total profits dropped by 4.2 percent to SR455 million from SR475 million in the period under review, the statement said.
It has achieved a 3.3 percent growth last year with total revenues reaching SR1.113 billion compared to SR1.077 billion in 2006. “The revenues earned in 2007 reflect the company’s ability to diversify its revenue sources without depending on exceptional contracts. It also indicates growth in company’s revenues in 2008,” the statement said.
The company’s operational profits in the fourth quarter of 2007 hit SR76 million, registering 8.6 percent increase compared to SR70 million in the same period a year ago. It made a net profit of SR52 million during the same period.
“The financial results for 2007 showed the company’s strength and liquidity and improved its profit indicators and financial performance standards. This will increase the company’s capability to distribute dividends to its shareholders and realize their hopes and aspirations,” the statement said.
“The year 2007 witnessed expansion in the company’s investment and internal activities... that will reflect positively on the company’s profits in the coming years,” it added.
Outlining its expansion activities, SRMG said it included development of studios for photography and television, investment in roadside advertising and issuance of new publications. It also expanded its specialized publications division, by including Ahlan Wasahlan, the in-flight magazine of Saudi Arabian Airlines. “We have also received contracts to issue some popular specialized publications in Arabic,” it revealed.
