Al Othaim posts highest ever quarterly sales in Q1, 4.5% of profit from marketing leasing: CEO

Logo of Abdullah Al Othaim Markets Co.

Abdullah Al Othaim Markets Co.’s sales exceeded SAR 2.8 billion, hitting their highest ever quarterly level, backed by well-studied expansions, CEO Muaffaq Mubarah told CNBC Arabia.

Marketing leasing grew by 38%, Mubarah explained, adding that it contributed around 4.5% to the company’s operating profit.

The company has zero debts. It boasts strong liquidity and positive cash flows, which contributed to higher profit after being invested in Sharia-compliant deposits. Al Othaim maintains positive cash flows through the optimal utilization of cash and pursuing expansions to drive growth.

Al Othaim has more than 315 selling stores across the Kingdom and receives strong turnout from customers, Mubarah noted, pointing to continuous growth in sales. The company continues to leverage its solid infrastructure, which was positively reflected on operating expenses.

The company is also pursuing its efficiency program, the CEO added, noting that it adapts change in consumer behavior.

Mubarah concluded that the stock split process will help expand the company’s investor base.

The supermarket chain posted an 18% rise in Q1 2023 net profit to SAR 120 million, from SAR 101.8 million in the year-earlier period, Argaam reported.