Al Othaim Markets Profits Jump 58% during 1Q to SR91 mln

The net profit after zakat and tax for Abdullah Al Othaim Markets Company jumped to SR91 million during the first quarter, compared to SR58 million during the same quarter of the previous year, at a rate of 58%.

This came after Al Othaim announcement on Wednesday the consolidated preliminary financial results for the period ending on 31.03.2022 (three months).

The operational profit amounted to SR90 million during the first quarter, compared to SR67 million during the same quarter of the previous year, a growth of 34%.

The gross profit amounted to SR489 million during the first quarter, compared to SR419 million during the same quarter of the previous year, an increase of 17%.

Profits per share during the current period amounted to 1.01, compared to SR0.64 during the same period of the previous year.

The reason of the increase (decrease) in the net profit during the current quarter compared to the same quarter of the last year is

– Sales growth by 17.42%, which was, mainly, due to the entry of Ramadan season in the first quarter of this year, while last year the season was in the second quarter.

– The performance of subsidiaries and associates has improved in addition to recording the company’s share in the profit of (Gulf Flour Milling Company) which was not there in the corresponding quarter.

– Despite the Increase in selling and distribution expenses due to opening new stores and the increase in G&A expenses due to enhancing competencies in senior positions.

Although the current quarter witnessed a growth in sales by 15.14% compared with the previous quarter, but the gross margin in the current quarter declined against the previous quarter due to recognizing the annual targets incentives from suppliers at the end of the fiscal year. In addition, the marketing leasing revenues declined in the current quarter due to the focusing of the suppliers on subsidizing Ramadan season goods.

The performance of subsidiaries and associates has improved in addition to recording the company’s share in the profit of (Gulf Flour Milling Company) for the first quarter, while the previous quarter includes the share from the results of December only.

Some comparative figures have been restated to be consistent with the presentation of the current year.