Riyadh – Mubasher: Abdullah Al Othaim Markets Company (Abdullah Al Othaim) announced its initial financial results for the second quarter of 2019.

Net profits after zakat and tax plunged by 20.7% to SAR 58.73 million in Q2-19, compared to SAR 74.11 million in Q2-18, according to the company’s statement to the Saudi Stock Exchange (Tadawul) on Sunday.

Meanwhile, revenues of the Saudi-based company increased by 7.3% to SAR 2.17 billion during the three-month period ended in June, from SAR 2.02 billion in the same period of the prior year.

“Consolidated net profit declined by 20.75% compared with the same quarter of the previous year, despite the sales growth by 7.37% due to the negative impact of applying IFRS 16 (Lease contracts) as explained below in "Other notes", in addition to the increase in the operating costs,” the statement highlighted.

For the first six months of 2019, Abdullah Al Othaim posted a 10.1% year-on-year drop in profits, recording SAR 127.08 million.

Total revenues advanced by 8.12% to SAR 4.13 billion in H1-19, versus SAR 3.82 billion in H1-18.

Profit per share stood at SAR 1.41 during the six-month period between January and June, from SAR 1.57 in the corresponding period in the prior fiscal year.