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.
| 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.
| 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 %) |
| Item | Q2 2021 | Q3 2021 | Change |
|---|---|---|---|
| Revenues | 2,171.27 | 2,000.74 | (7.9 %) |
| Gross Income | 400.49 | 400.94 | 0.1 % |
| Operating Income | 36.73 | 36.21 | (1.4 %) |
| Net Income | 47.93 | 44.87 | (6.4 %) |
| Average Shares | 900.00 | 900.00 | - |
| EPS (Riyals) | 0.05 | 0.05 | (6.4 %) |
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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