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

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

10/11/2021 Argaam Exclusive

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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.   



Financials (M)

Item 9m 2020 9m 2021 Change‬
Revenues 6,766.73 6,269.27 (7.4 %)
Gross Income 1,383.10 1,222.66 (11.6 %)
Operating Income 299.92 120.24 (59.9 %)
Net Income 285.50 150.48 (47.3 %)
Average Shares 900.00 900.00 -
EPS (Riyals) 0.32 0.17 (47.3 %)

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.



Current Quarter Comparison (M)

Compared With The
Item Q3 2020 Q3 2021 Change‬
Revenues 1,812.81 2,000.74 10.4 %
Gross Income 411.63 400.94 (2.6 %)
Operating Income 59.73 36.21 (39.4 %)
Net Income 60.69 44.87 (26.1 %)
Average Shares 900.00 900.00 -
EPS (Riyals) 0.07 0.05 (26.1 %)

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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