Al Othaim posts SAR 250.1M profit in 2025; Q4 at SAR 115.1M

Abdullah Al Othaim Markets Co. posted a net profit of SAR 250.1 million for 2025, a drop of 51.1% from SAR 511 million in 2024.

According to the company, the previous year's results included non-recurring gains of approximately SAR 161.3 million (after Zakat) from the initial public offering (IPO) of the Fourth Milling Co., as well as the reversal of Zakat provisions for prior years amounting to SAR 17.7 million.

Excluding these non-recurring items, the decrease in net profit would have been 24.7%. This is attributed to a decline in profit margins resulting from the company's promotional offers and discounts aimed at maintaining its market share, which contributed to a 3.03% growth in sales, it added.

Additionally, operating costs across various sales channels increased, and the results were impacted by higher expenses associated with opening new stores (less than two years of operation), most notably the cost of financing lease contracts in accordance with IFRS 16.

On the other hand, the performance of associates improved during the current period. Rental income increased due to the leasing of new spaces, lease financing income, and the renewal of the lease contract for the shopping mall in Dammam. Profits from the labor services sector of the subsidiary, Mueen Human Resources Company, also increased, in addition to a decline in administrative and general expenses.

The fourth-quarter net profit slumped 59.5% to SAR 115.12 million from SAR 284.32 million in Q4 2024. Sequentially, Al Othaim’s bottom line leapt 558.5% from SAR 17.48 million in Q3 2025.

Total shareholders’ equity, after minority interest, decreased to SAR 1.23 billion as of Dec. 31, 2025, from SAR 1.37 billion in the year-earlier period.

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