Al Othaim 9M 2021 net profit falls 47% to SAR 150.5 mln

Abdullah Al Othaim Markets Co. posted a net profit after Zakat and tax of SAR 150.5 million for the nine-month period ended Sept. 30, 2021, a drop of 47% from SAR 285.5 million in the year-earlier period.   

The profit decline was attributed to a 7.41% drop year-on-year (YoY) in sales, while the first half of 2020 witnessed high demand for buying as a precaution to the preventive measures taken to curb the COVID-19 outbreak along with high demand ahead of raising VAT on July 1, 2020.

The company also cited a drop in gross profit margins due to the increase in promotions and the change in consumer behavior and an increase in general and administrative (G&A) expenses.

In Q3 2021, net profit after Zakat and tax decreased by 26% to SAR 44.9 million from SAR 60.69 million a year earlier on a 10.15% drop year-on-year (YoY) in sales from existing and new branches, while the Q3 2020 witnessed a notable drop in sales after VAT was tripled to 15%. The sales in current quarter started to return to the normal levels.

The company also cited a drop in gross profit margins and higher G&A.

When compared to the previous quarter, Q3 net profit declined 6.4% from SAR 47.93 million.

Shareholders’ equity, after minority interest, fell 10.3% to SAR 1.220 billion in the nine-month period, from SAR 1.361 billion a year earlier.

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