Abdullah Al-Othaim Markets Company recorded a 19.5% decrease in the profits of the third quarter of 2020, to reach after zakat and tax 60.69 million riyals, compared to 75.38 million riyals during the same period of the previous year .
According to Arabiya Net, the company clarified in a statement that the decline in quarterly profits is due to a decrease in sales by 6.41% driven by the decline in customer buy-in after applying the increase in the value tax rate. Added.
and indicated that the reasons for the decline also include shifting education in schools to distance education as a precaution to prevent the spread of the Corona virus, which made the company lose the opportunity to achieve sales of the back-to-school season.
It also showed that the negative impact of the Corona pandemic continued on the company's real estate activity, as the company granted discounts and grace periods to tenants for the closing periods, and that there is still a negative impact on the operations of Affiliates and associates due to the pandemic.
And on a quarterly basis, the company's profits fell by 51.54%, compared to the profits of the previous quarter, which amounted to 125.25 million riyals.
The company recorded profits of 285 million riyals by the end of the first nine months in 2020, compared to recording profits of 202 million riyals during the same period of the previous year, an increase of 41%.
and the reason for the increase in net profit during the current period compared with the same period of the previous year is the growth in sales by 11.53% driven by the increase in customer demand for food and supplies purchases during periods The closure imposed by the government to limit the spread of the Coronavirus pandemic during the first half of the year, in addition to improving profit margins and savings in some cost components as a result of benefiting from government initiatives to mitigate the effects of the Coronavirus pandemic.
