Al Othaim posts SAR 490.7M profit in 2023, SAR 168.9M in Q4

Abdullah Al Othaim Markets Co. posted a net profit of SAR 490.7 million for 2023, compared to SAR 1.07 billion in 2022.

The company attributed the profits to a 6.85% increase in sales from existing and new stores opened during the year, as well as improvements in profit margins and marketing lease activity and gains from investing excess cash in Shariah-compliant deposits.

Moreover, Al Othaim recovered SAR 4.1 million in impairment provisions related to the subsidiary in Egypt.

Meanwhile, expenses related to the new stores, mainly the finance cost of lease contracts, rose by SAR 25.3 million. The performance of the associate companies also fell by SAR 14.3 million.

Al Othaim reported non-recurring capital gains of SAR 96.9 million, after Zakat, from the sale of investment land in Riyadh, compared to SAR 701.2 million in 2022.

When eliminating the non-recurring capital gains, the growth in the company's net profits would be 3.23%.

The fourth-quarter net profit fell 1.1% to SAR 168.87 million from SAR 170.80 million in Q4 2022, on higher expenses related to the new store openings, mainly the finance cost of lease contracts reaching SAR 6.5 million. The performance of the associate companies fell by SAR 4 million.

Compared to Q3 2023, Al Othaim’s bottom line jumped by 170.7% from SAR 62.38 million as sales grew and profit margin improved due to the increase in incentives related to achieving the sales targets from suppliers compared to the previous quarter, in addition to the increase in the performance of the associate companies.

Total shareholders’ equity, after minority interest, decreased to SAR 1.35 billion as of Dec. 31, 2023, from SAR 1.40 billion in the year-earlier period.

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