Riyadh-Mubasher: Abdullah Al Othaim Markets Co. made SAR 37 million in net earnings during the three-month period ended 30 September, down 12% compared with SAR 42 million in the corresponding quarter of 2014.

However, nine-month net profits grew 0.78% year-on-year from SAR 140.5 million to SAR 141.6 million.

Although consolidated sales rose by 11.6%, the increase in operating expenses, particularly the staff cost, rent cost and pre-operating expenses for new stores and projects, in addition to the decline in net rental income by 8.4% because of the added cost of the new spaces, which contracts did not start yet, all these resulted in a decline in net profit for the third quarter compared to the same quarter of the previous year, the company said in a bourse statement.

It added that growth in sales from existing and new branches by 13.68%, in addition to increase in rental income, income from associates, and other income, drove the growth in net profit of the period compared to the corresponding period of the previous year, despite the decline in gross profit resulted from higher cost of sales.