Logo of Al Othaim Markets
Abdullah Al Othaim Markets Co. made an operating profit of SAR 57.4 million in Q2 2022, a rise of 2.4% year-on-year (YoY), driven by better sales and profit margins despite seasonality seasons as part of Ramadan coincided with the second quarter, Vice Chairman Bader AlAujan told Argaam.
The second quarter faced some negative impacts due to the supply chains crisis, but the situation is getting better.
The marginal decline in Q2 net profit was attributed to some investments, which were boosted by the holy month of Ramadan last year.
The financial impact of the company’s sale of Abdullah Al Othaim Investment Co. was not reflected on the first-half results, as the deal completion depends on Al Othaim’s shareholders approval. However, the general assembly meeting has not yet convened, AlAujan added.
He added that Al Othaim’s total number of branches in the Kingdom reached 18 in H1 2022, with other 44 in Egypt. The Central Region was the biggest contributor to the company’s revenue, AlAujan explained, noting that the executive management is working on reaching shoppers everywhere in the Kingdom.
Elsewhere, he said Al Othaim’s performance in Egypt has witnessed significant growth in sales and net profit. The company is mapping out an expansion plan to tap various opportunities considering risks.
The Egypt-based subsidiary has no foreign-currency liabilities, as it buys goods from the local market in Egyptian pound and sells products in Egyptian currency, therefore, there is no impact from the currency devaluation.
AlAujan added that Gulf Flour Milling Co. contributed nearly SAR 10 million to the second-quarter profit. The company is looking forward to similar investments with its partners going forward.
The company also targets better results in every quarter, compared to the last year, he concluded.
Al Othaim posted a rise of 31% in net profit after Zakat and tax of SAR 137.9 million for the first half of 2022, from SAR 105.6 million in the year-earlier period. The food retailer’s second-quarter net profit after Zakat and tax declined 3% to SAR 46.6 million, Argaam earlier reported.
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