Al Othaim holds 20% of market; Q4 outlook positive: CEO

Muaffaq Mubarah, CEO of Abdullah Al Othaim Markets Co.

Abdullah Al Othaim Markets Co. achieved remarkable progress in terms of market share during the third quarter of 2024, reaching over 20%, CEO Muaffaq Mubarah told Argaam.

He added that this percentage reflects the brand's strength and the success of the company's strategy in expanding market share despite fierce competition in the retail sector.

The company currently operates around 400 branches in Saudi Arabia, Mubarah said, noting that data shows that the central region, known for its robust commercial activity and large market, contributes the most to revenue.

Al Othaim made substantial progress in Egypt, as the number of its branches in the country grew to 55, the CEO said, stressing that the firm seeks to continue expanding in Egypt, given that this market has strong growth potential.

Commenting on financial results, Mubarah said Al Othaim's strong performance this period led to earnings of SAR 75.4 million, a significant increase compared with the same period last year.

This growth reflects the company's ongoing efforts to improve its operational efficiency, expand customer base, and increase its branch network. At present, the company has 400 branches in Saudi Arabia.

Mubarah also highlighted the firm's efforts to promote services to fulfill market needs, noting that the subsidiaries' business expansion remarkably supports this growth.

Sales exceeded SAR 2.5 billion, up approximately 5% year-on-year (YoY), outperforming the estimated market growth rate of 1.8%, the CEO said. He added that this underscores the effectiveness of the company's branch expansion strategy and stable sales at existing stores.

Further, Mubarah said the back-to-school season had a notable positive effect on Q3 2024 sales, driving demand for school-related products. He added that this season significantly helps the company boost revenues, which reflects positively on earnings.

The top executive expressed optimism for Q4 2024, expecting strong sales and profit growth, particularly during the end-of-year season, which traditionally sees an increase in demand for retail products.

Mubarah said Al Othaim's expansion strategies, partnerships with suppliers, and affiliate growth will continue to yield strong returns, noting that the company is committed to innovation and customer experience improvements to lead the retail sector.