Abdullah Al-Othaim Markets Company achieved a 30.8% growth in net profit to reach 450.97 million riyals in 2020, compared to 344.67 million riyals in 2019 profits.
According to Arabiya Net, the company attributed the profit growth to sales growth of 7.91% to 8.8 billion riyals, driven by an increase in customer demand to buy food and supplies during the closing periods Imposed by the government to limit the spread of the Coronavirus pandemic during the first half of the year, despite the decline in sales in the second half, in addition to improved profit margins and savings in some cost components as a result of benefiting from government initiatives to mitigate the effects of the Coronavirus pandemic.
and the discontinued operations include a profit of 6.67 million riyals resulting from the revaluation of the assets available for sale related to the stopped agricultural activity at fair value. On the other hand, the real estate activity of the company was negatively affected during the first half of the year, as the company granted discounts and exemptions to tenants as compensation for them for the closing periods, and the operations of subsidiaries and associates were negatively affected by the closure during the first half of the year.
fourth quarter
On the level of the fourth quarter, the company’s data showed that it achieved a growth in net profits of 16% to 165.48 million riyals, despite the decline in revenues during the same period by 2.56% to 2.045 billion riyals.
and the company attributed this to the decline in customer demand for purchases after raising the value-added tax rate as of 07/01/2020, and converting education in schools to distance education as a measure. Precaution to prevent the spread of Corona virus, which lasted until the fourth quarter of the year.
On the other hand, discontinuous operations include a profit of 6.67 million riyals resulting from the revaluation of the assets available for sale related to the discontinued agricultural activity at fair value.
