Al-Othaim expects commodity prices to decline by year end to ‎‎2021 levels

Bader Al-Aujan, Vice Chairman of Abdullah Al-Othaim Markets, said that the company aims to maintain the continuity of dividend distribution after distributing 4 riyals during 2021.

According to Al-Arabiya, Al-Aujan added, “With regard to distributions, the board always studies with the executive management and what matters to us is continuity, and that we maintain the same level of distributions.”

He stressed that the company is working to reduce the passing of the increase in commodity prices to shoppers, pointing out that some commodities are imported from abroad and their prices are inflated, as well as other commodities such as poultry that depend on feed imported from abroad.

“According to the monthly food price index from FAO, we have a decrease in food prices in July less than last February, and it is expected at the end of the year that the prices of commodities will be similar to what they were in 2021, and Saudi Arabia is considered one of the countries in the lowest rates of inflation. According to Al-Aujan

Regarding the company’s expansion plans, Al-Aujan said, “Our affairs became easier in the first half and we opened 18 new branches, and we are working hard to be close to consumers to provide them with the best goods at lower costs, and we are trying to raise the number of our new branches to more than 24 in 2022.”.

The profits of Abdullah Al-Othaim Markets were lower than the average expectations of analysts for the second quarter, and the quarterly profits fell 3% on an annual basis to about 47 million riyals. Note that the average forecast was about 60 million riyals

The company attributed the decline in its quarterly profits to the occurrence of the Ramadan season in the first quarter of this year, while the previous year was the season in the second quarter.

However, the quarterly sales grew by about 4%, but it was offset by an increase in selling and distribution expenses as a result of the opening of new branches.

As for the end of the first half, the profits of Abdullah Al-Othaim Markets Company grew 31% to 138 million riyals.

Abdullah Al-Othaim Markets Company announced the distribution of cash dividends to shareholders for the first half at two riyals per share.