“Al-Othaim Markets”: Our market share rose to 20%… Sales exceeded 3 billion riyals Q1

Muwaffaq Mubarah, CEO of Abdullah Al Othaim Markets Company, said that the company’s sales exceeded 3 billion riyals in the first quarter of 2024, with a steady annual growth of around 10%.

According to Al Arabiya, Mubarah added that the market share rose from 18.9% to 20% currently, noting that operating profits grew by about 5.7% in the first quarter.

He revealed that the company’s profitability was affected by 4.7 million riyals due to the high cost of financing in the first years, in addition to the impact of some associate companies, whose profitability fell by 2 million riyals.

He stated that the company’s deposit returns decreased to 5 million riyals, indicating that these are all side activities, but as for the main activity, it recorded growth in profitability and sales.

Mubarah said that the company is trying to balance the opportunities available to it and the distribution of profits to investors, pointing out that the dividends are in line with the declared profits, and this is evidence of the presence of positive cash flows that are reflected in the growth of its business and dividends.

The preliminary financial results of Abdullah Al Othaim Markets Company showed a decline in its net profits by 2.98% in the first quarter of 2024, to about 116.43 million riyals, compared to a net profit of about 120.01 million riyals in the first quarter of 2023.

The net profits of “Al-Othaim Markets” decreased by 31.09% in the first quarter of 2024, compared to a net profit of about 168.96 million riyals in the fourth quarter of 2023.

“Al-Othaim Markets” said in a statement on “Tadawul” that despite sales growth by about 9% and operating profit by 5.6%, net profit decreased slightly by 3% due to the increase in expenses associated with the new branches, the most important of which is the cost of financing lease contracts by 4.7 million. Riyals, in addition to a decline in the performance of associate companies by 2.3 million riyals, and a decrease in liquidity profits invested as deposits compatible with Islamic Sharia by 4.8 million riyals.