Al Othaim Q1 2025 profit down 34% to SAR 76.4M

Abdullah Al Othaim Markets Co. reported a 34% decline in its Q1 2025 net earnings to SAR 76.4 million, compared with SAR 115.5 million a year before.

The year-on-year (YoY) profit slump was attributed to the lower profit margin, given the extensive Ramadan marketing campaigns aimed at boosting market share.

In addition, the company incurred higher costs tied to new branch additions, specifically SAR 9.5 million in lease financing under IFRS 16 and SAR 3.8 million in borrowing expenses.

However, this was partially offset by increased revenues for Q1 2025, thanks to stronger sales at already-existing and new branches during the Ramadan season. This was paired with improved rental income and a better share in associates’ results.

Compared to Q4 2024, Al Othaim's three-month earnings plunged by 73.1% from SAR 284.32 million, due to a lower gross margin compared to the previous quarter when the company capitalized on supplier performance incentives.

Moreover, the Q1 2025 rental income tumbled on a sequential basis. Al Othaim also witnessed a reduced quarter-on-quarter (QoQ) contribution from associates for the first three months of this year, as the Q4 2024 results included SAR 161.3 million in one-off gains from the IPO of Fourth Milling Co. (MC4).

The QoQ earnings fall, however, was partly offset by an 18.2% sequential increase in the first-quarter sales.

Shareholders’ equity, after minority interest, rose to SAR 1.35 billion as of March 31, 2025, from SAR 1.25 billion a year earlier.

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