Al Othaim CEO says performance reflects strategic plans, expansions on track

Abdulaziz Al Othaim, CEO of Abdullah Al Othaim Markets Co.

Abdullah Al Othaim Markets Co.’s performance is part of the company’s strategic plans and vision for boosting its market share and improving profit margins to serve investor interest, CEO Abdulaziz Abdullah Al Othaim told Argaam in an exclusive.

The company is pursuing expansions in new branches as it develops the existing ones in line with the ambitions of its management, customers and investors, to enhance its services.

The Saudi-listed retailer has developed a strategy to expand presence across all provinces to meet customer demands, bringing up its total network branches to 253 in the Kingdom, Al Othaim said.

Replying to a question about Al Othaim’s stock of basic food commodities in case of a new COVID-19 lockdown, the CEO affirmed: “Al Othaim’s supplies and branches are ongoing normally. The company’s stock will be sufficient for several months, if supplies are suspended. Moreover, the internal stock supplies will be maintained, as the food retail sector is excluded from movement restrictions if another lockdown is imposed.”

Al Othaim’s 2020 earnings were propelled by better profit margins compared to 2019, despite a decline in sales amid low purchasing following the tripled value-added tax (VAT) and shifting to distance learning, he concluded.

The company posted a net profit after Zakat and tax of SAR 451 million in 2020, an increase of 31%, compared to a net profit of SAR 344.7 million a year earlier, Argaam reported.