Al Othaim’s profit spikes to SAR 882.5 mln in 9M 2022; Q3 at SAR 744.6 mln on stake sale

Abdullah Al Othaim Markets Co.’s net profit after Zakat and tax soared to SAR 882.5 million in the first nine months of 2022, from SAR 150.5 million in the year-earlier period.

The Saudi retailer posted growth of 12.83% year-on-year (YoY) from existing and new stores, and better profit margins.

Al Othaim recognized its profit share from Gulf Flour Milling Co. in the current period, but it was not recorded in the corresponding period.

The company realized nonrecurring capital gains of SAR 701.2 million, net of Zakat, from the sale of its investment in Abdullah Al-Othaim Investment Co. and the sale of investment land in Madinah, as announced earlier.

The profit surge was offset by higher general and administrative expenses. Al Othaim also derecognized its profit share from Abdullah Al-Othaim Investment Co. since the board decided to sell this investment.

In Q3 2022, net profit after Zakat and tax surged to SAR 744.59 million, from SAR 44.87 million in Q3 2021, buoyed by a 17.37% growth YoY in sales from existing and new stores. Al Othaim recognized its profit share from Gulf Flour Milling Co. in the current period, but it was not recorded in the corresponding period.

It also realized nonrecurring capital gains of SAR 701.2 million, net of Zakat, from the sale of its investment in Abdullah Al-Othaim Investment Co. and the sale of investment land in Madinah, as announced earlier.

Compared to the previous quarter, net profit after Zakat and tax spiked from SAR 46.63 million, thanks to a 3.96% rise in sales.

Shareholders’ equity, after minority interest, increased to SAR 1.892 billion as of Sept. 30, 2022, from SAR 1.220 billion a year earlier

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