Financial Results : Al Othaim posts 42% profit drop to SAR 57.7 mln in Q1 2021

Al Othaim posts 42% profit drop to SAR 57.7 mln in Q1 2021

06/05/2021 Argaam Exclusive

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Abdullah Al Othaim Markets Co. reported a plunge of 42% in net profit after Zakat and tax to SAR 57.7 million for the first quarter of 2021, from SAR 99.6 million in the year-ago period.

 

The profit fall was attributed to a sales decline of 11.87% year-on-year (YoY), as the first quarter of 2020 witnessed abnormal growth in retail sales, as a result of high demand to buy groceries and food supplies, as a precaution to the COVID-19 preventive measures.

 

In addition, sales were negatively affected by the increase in the value-added tax (VAT) as of July 1, 2020, and the shift of schools to distance learning.



Current Quarter Comparison (M)

Compared With The
Item Q1 2020 Q1 2021 Change‬
Revenues 2,379.50 2,097.15 (11.9 %)
Gross Income 459.32 419.22 (8.7 %)
Operating Income 92.82 47.30 (49.0 %)
Net Income 99.55 57.68 (42.1 %)
Average Shares 900.00 900.00 -
EPS (Riyals) 0.11 0.06 (42.1 %)

When compared to Q4 2020, the company’s net profit after Zakat and tax tumbled 65% from SAR 165.14 million, as the previous quarter’s financial results included annual target incentives, which are calculated and recognized at the end of the fiscal year. Moreover, the company reported a decline in real estate revenues, despite the growth in sales by 2.56% on a quarterly basis and the improvement in the performance of the associates.

Shareholders’ equity, excluding minority interest, dropped by 9.76% to SAR 1.308 billion by the end of Q1 2021, compared to SAR 1.449 billion in the year-ago period.

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