Al Othaim Investment posts 39% rise in 2022 profit to SAR 300 mln

Meshaal Bin Omairh, CEO of Abdullah Al Othaim Investment Co.

Abdullah Al Othaim Investment Co.'s (AOIC) strong 2022 financial results, which saw profit double during the year, are among the outcomes of its expansion strategy that targets more growth across the group's segments, including commercial complexes, hotels, real estate investment, entertainment and cinema, retail, fashion, restaurants and cafes, etc., said CEO Meshaal Bin Omairh.

AOIC’s 2022 consolidated financial results showed SAR 922 million in total revenues, up 13% year-on-year (YoY). Further, net profit came in at about SAR 300 million, an increase of 39% YoY, according to Argaam's data.

Moreover, gross profit margins rose 20% YoY to SAR 452 million in 2022, driven by the surge in entertainment revenue locally and regionally. This was coupled with improved operating margins in the commercial complexes segment.

In addition, shareholders' equity amounted to SAR 1.91 billion by the end of 2022, compared to SAR 1.82 billion a year earlier, after interim dividends worth SAR 200 million were paid for 2022.

The top executive also highlighted the recent acquisition and opening of three new complexes.

This is besides the launch of integrated model projects, including Kunoz project in Riyadh which is considered AOIC’s biggest investment worth above SAR 7 billion, Al Othaim Park in Dammam with SAR 1.5 billion and Khobar Sea Front tender worth up to SAR 500 million.

This is in addition to fully acquiring Al Othaim Mall Al Rabwa and a number of key sites in several cities, including Madinah and Al Qurayyat.

AOIC also secured strategic partnerships with several financial institutions and the national Quality of Life Program, within the framework of its vision and expansion strategy, he added.

As part of its expansion strategy, AOIC began construction works to add new complexes in Riyadh, Dammam, Jubail, Al Khobar, Al Mithnab, Al Kharj, Abha, Jizan, Taif and Al Qurayyat, the CEO noted.

AOIC currently owns 12 commercial complexes, spreading across Riyadh, Dammam, Al Ahsa, Hafar Al Batin, Al Khafji, Buraydah, Unayzah, Al Rass, Hail and Arar.