“Al-Othaim Markets” quarterly profits jump 58% to 91.3 million riyals

Abdullah Al-Othaim Markets Company achieved a net profit of 91.3 million riyals in the first quarter of 2022, an increase of 58%, compared to the profits of 57.7 million riyals recorded by the company in the same period of 2021.

The company explained in a statement on “Saudi Tadawul” that the reason for the increase in net profit is due to sales growth of 17.42%, mainly due to the occurrence of the Ramadan season in the first quarter of quest’year, while the previous year was the season in the second quarter.

He added that the improvement of the performance of subsidiaries and associates was one of the reasons for the increase in earnings, as well as recording the company’s share of the earnings of (Gulf Flour Milling Company) for the first quarter, which was not present in the corresponding quarter.

He indicated that this occurred despite the increase in sales and distribution expenses following the opening of new branches, as well as the increase in administrative expenses following the strengthening of administrative staff. in leadership positions.

The company attributed the reason for the decline in earnings in the first quarter of 2022 compared to the previous quarter to the registration of incentives for annual sales targets by suppliers at the end of the fiscal year, in addition to the decline in revenues from leasing marketing activities in the first quarter due to suppliers’ focus on supporting Ramadan season product prices.

He added that this was despite sales growth of 15.14% over the previous quarter and improvement in performance of subsidiaries and associates, as well as recording the company’s share of the Gulf Flour Milling Company’s earnings for the full first quarter, while the previous quarter included that company’s share of the results for the month of December alone.

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