Al-Othaim Markets profits jump 1560% in the third quarter to 745 million riyals

The financial statements of Abdullah Al-Othaim Markets Company revealed that the company achieved a leap in profits for the third quarter of this year by 1560% to reach by the end of the period to 744.6 million riyals, compared to 44.9 million riyals in profits for the same period in 2021.

Al-Othaim Markets said in a statement to the Saudi market (Tadawul), today, Monday, that the significant increase in profits during the comparative periods is mainly due to the growth of sales by 17.4% from existing and new branches.

Al-Othaim Markets indicated that sales increased due to the back-to-school season, while in the previous year teaching was still remote due to the Corona pandemic, but the profit margin declined due to the increase in promotions and the change in customer behavior by focusing on discounted merchandise.

In addition, administrative expenses increased due to the strengthening of administrative staff in leadership positions, and leasing activity decreased, according to a statement by Al-Othaim Markets.

Al-Othaim Markets also shared its share of the profits of the Gulf Flour Milling Company for the third quarter, while it was not recorded in the corresponding quarter. On the other hand, the company stopped recognizing its share of the profits of Abdullah Al-Othaim Investment Company based on the Board of Directors’ decision to sell this investment.

Al-Othaim Markets achieved non-recurring capital gains of 701.2 million riyals after zakat from the sale of its investment in Abdullah Al-Othaim Investment Company and the sale of investment land in Medina, as previously announced.

The profits of Al-Othaim Markets in the first nine months of this year increased by 486.5% to reach 882.54 million riyals, compared to the profits of the same period of the previous year, which amounted to 150.48 million riyals.

The revenues of Al-Othaim markets at the end of the first nine months of this year amounted to about 7.07 billion riyals, compared to 6.27 billion riyals in the same period of 2021, with an increase in revenues by 12.8%.