Saudi book and office supply trader Jarir Marketing Co. aims to triple sales to SR2.4 billion ($640 million) in 2010 by expanding in the Gulf and into Egypt, its executive chairman said on Thursday. Muhammad Al Agil told Reuters the projection assumed a modest 2 to 3 percent rate for economic growth in the company's Saudi home market. He declined to estimate a rise in demand over the next five years. "We are not growing because of the (oil price) boom, we have been growing since the 1980s ... It is just evolution and this country is virgin territory," Agil said of his company which has risen to the middle ranks of Saudi Arabia's listed firms with a market capitalization of nearly SR2.25 billion. Jarir posted a net profit of SR120.6 million for 2004, up from SR108.8 million in 2003, and sales rose 24.5 percent to SR825.7 million last year, according to results reported earlier this month. Agil said the company expected to hit SR1 billion in sales this year and increase earnings per share to SR30 from SR25 in 2004. He said sales could grow to SR2.4 billion in 2010. "It (our projection) is based on more stores and more products, you have to be careful about demand, it will plateau," said Agil. "When you start looking at demographics you can overshoot." Return on equity was now near 40 percent, he said. "This is totally not typical in the retail business here ... many did not believe it," Agil said.
