Al Othaim’s market share in modern trade reaches 20%: CEO

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Abdullah Al Othaim Markets Co.'s market share reached nearly 20% within modern trade, supported by infrastructure and logistics, CEO Muaffaq Mubarah said.

In an interview with Argaam, he noted that the sector recorded a modest growth of approximately 1% in Q2 2024, based on the market indicators from market research firm Nielsen Co. However, sales growth outpaced the total market, reaching about 4%, the CEO said.

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Mubarah expects the sector to recover from the contraction experienced in the second quarter, projecting more positive numbers in the third quarter, especially with the back-to-school season and the National Day.

He further stated that the company opened nine branches in the Kingdom during Q2 2024, bringing the total to 376. The company serves more than 100 cities and governorates and is the largest retail store chain in the Kingdom. Additionally, its branches in Egypt reached 53.

Mubarah said Riyadh contributes the most sales and profits, followed by the Southern region.

Regarding the company’s financial performance during Q2 204, the CEO attributed the decrease in profit to the results of the corresponding period, which included nearly SAR 97 million in non-recurring capital gains after Zakat from the sale of land. Excluding the gains, the decline in net profit is only about 0.8%.

Al Othaim’s earnings before interest, Zakat, depreciation and amortization (EBITDA) in the first half of the year rose by 6.2%, exceeding SAR 443 million, compared to SAR 417 million in the same period of the previous year, he said.

Mubarah stressed that the company is continuing its ambitious growth and expansion plans in the Kingdom and Egypt, including branch expansion, adopting innovative practices in the retail sector and investing more in its own brands.