Al-Othaim Markets profits increase to SAR 120 million in Q1, by 18%

Abdullah Al-Othaim Markets Company revealed an increase in its net profit after zakat and tax in the first quarter to SAR 120 million, compared to SAR 101.7 million in the same quarter of last year, by 18%. This came after the announcement on Wednesday of the interim financial results for the period ended on 31.03.2023. (Three months).

The operational profit amounted to SAR 122.7 million in the first quarter, compared to SAR 102.2 million in the same quarter of the previous year, a growth of 20%.

The total shareholders’ equity “without minority rights” amounted to SAR 1.27 million in the current period, compared to SAR 1.28 million in the same period last year, a decrease of 1.4%.

Profit per share in the current period reached SAR 1.33, compared to SAR 1.13 in the same period last year.

Sales growth of 12.96% from existing and new branches, and an improvement in the performance of leasing activity. In addition to making gains from investing the cash liquidity in Islamic sharia compliant bank deposits.

The increase in the profit margin in the previous quarter, where the company recognize growth incentive revenues earned from suppliers, despite the growth in sales by 11.61% from existing and new stores, and despite the increase in the profits of the associate companies and the gains realized from investing cash liquidity in Islamic sharia compliant bank deposits.

The company changed the method of recognizing growth incentive revenues earned from suppliers for the interim financial periods (quarters), by estimating these revenues and recording them on a quarterly basis instead of annual basis, taking into consideration the seasonality of sales, expected growth rates and returns in subsequent periods. This change came in order to comply with the requirements of IFRS (15) – “Revenues from Contracts from Customers” and IAS (34) – “Interim Financial Reporting”, in addition to providing more reliable financial information for the users of the financial statements.

In addition to providing more reliable financial information to users of the financial statements. Some comparative figures have been restated to be consistent with the presentation of the current period.

The impact of the aforementioned change was increasing net profit for the current quarter by SAR 8.09 million, while the impacts of the change on net profit for the corresponding quarter and the previous quarter were SAR 10.47 million positive and SAR 24.95 million negative, respectively.

It is worth noting that this change affects the interim financial statements only and has no impact on the annual results.

During the first quarter of the current year, the Company opened ten stores and shut down one, compared to opening nine and shutting down two stores during the corresponding quarter.

The quarterly investors presentation will be available on the Investors relations page of the Company website.