Al Othaim net profit climbs 58% to SAR 91.3 mln in Q1 2022

Abdullah Al Othaim Markets Co. posted a net profit after Zakat and tax of SAR 91.3 million for the first quarter of 2022, a jump of 58% from SAR 57.7 million in the year-earlier period. 

The company reported sales growth of 17.42% year-on-year (YoY), mainly due to the entry of Ramadan season in the first quarter of this year, while Ramadan was in the second quarter of 2021.

The performance of Al Othaim’s subsidiaries and associates improved. The company recorded a profit share from Gulf Flour Milling Co., compared to nil in Q1 2021.

The positive growth came despite higher selling and distribution expenses, as well as general and administrative (G&A) expenses.

Compared to the previous quarter, net profit after Zakat and tax dropped 39% from SAR 149.64 million, as Al Othaim recognized the annual target incentives from suppliers at the end of the fiscal year. In addition, the marketing leasing revenues declined Q1 2022 as suppliers focused on subsidizing Ramadan season goods.

Shareholders’ equity, after minority interest, decreased by 2.2% to SAR 1.279 billion in Q1 2022, from SAR 1.308 billion a year earlier.

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