Al Othaim 2021 net profit drops 34% to SAR 300.1 mln; Q4 earnings at SAR 149.6 mln

Abdullah Al Othaim Markets Co. posted a net profit after Zakat and tax of SAR 300.1 million in 2021, down 32% from SAR 451 million last year.

The company attributed the decline in earnings to a drop in sales by 4.63% year-on-year (YoY), a fall in gross profit margin due to the increase in promotions and the change in consumer behavior by focusing on discounted products.

Higher selling and distribution expenses due to opening new stores, and general and administrative (G&A) expenses due to recording advisory fees for the acquisition transaction related to the Fourth Milling Company also contributed to the profit decline.

On the other hand, real estate activity started to recover after witnessing a decline in the previous year.

The performance of the subsidiaries and associates improved as they were affected by the preventive measures in the previous year.

Q4 2021 net profit after Zakat and tax declined 10% YoY to SAR 149.6 million, due to G&A, as well as selling and distribution expenses. 

Compared to the previous quarter, the fourth-quarter earnings rose three-fold.

Shareholders’ equity, after minority interest, dropped to SAR 1.373 billion in 2021, from SAR 1.524 billion a year earlier.

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