Abdullah Al Othaim Markets Co. announces its Interim Financial results for the Period Ending on 2023-12-31 ( Twelve Months )
| Element List | Current Quarter | Similar quarter for previous year | %Change | Previous Quarter | % Change |
|---|---|---|---|---|---|
| Sales/Revenue | 2,563.42 | 2,492.1 | 2.861 | 2,439.11 | 5.096 |
| Gross Profit (Loss) | 649.76 | 628.55 | 3.374 | 539.37 | 20.466 |
| Operational Profit (Loss) | 186.71 | 181.43 | 2.91 | 86.68 | 115.401 |
| Net profit (Loss) | 165.7 | 170.8 | -2.985 | 62.38 | 165.63 |
| Total Comprehensive Income | 148.03 | 163.82 | -9.638 | 63.31 | 133.817 |
| All figures are in (Millions) Saudi Arabia, Riyals | |||||
| Element List | Current Period | Similar period for previous year | %Change |
|---|---|---|---|
| Sales/Revenue | 10,203.78 | 9,549.55 | 6.85 |
| Gross Profit (Loss) | 2,271.55 | 2,085.62 | 8.914 |
| Operational Profit (Loss) | 460.94 | 411.13 | 12.115 |
| Net profit (Loss) | 487.51 | 1,079.51 | -54.839 |
| Total Comprehensive Income | 465.44 | 1,073.85 | -56.656 |
| Total Share Holders Equity (After Deducting the Minority Equity) | 1,355.14 | 1,407.2 | -3.699 |
| Profit (Loss) per Share | 0.54 | 1.2 | |
| All figures are in (Millions) Saudi Arabia, Riyals | |||
| Element List | Percentage of the capital (%) | Amount | |
|---|---|---|---|
| Profit (Losses) Resulting From The Change In Investment Propertie’s Fair Value | - | - | |
| All figures are in (Millions) Saudi Arabia, Riyals | |||
| Element List | Explanation |
|---|---|
| The reason of the increase (decrease) in the sales/ revenues during the current quarter compared to the same quarter of the last year is | Sales growth by 2.86% from existing and new stores opened during the current quarter. |
| The reason of the increase (decrease) in the net profit during the current quarter compared to the same quarter of the last year is | Increase in expenses related to the new stores' opening, mainly, finance cost of lease contracts with the sum of SR 6.5 million, and the decline in the performance of the associate companies with the sum of SR 4 million, despite the sales growth and the improvement in the gross margin and operational efficiency, in addition to the recovery of impairment provision related to the subsidiary in Egypt by SR 4.1 million. |
| The reason of the increase (decrease) in the sales/ revenues during the current quarter compared to the previous one is | Sales growth by 5.10% from existing and new stores opened during the current quarter. |
| The reason of the increase (decrease) in the net profit (loss) during the current quarter compared to the previous one is | Sales growth and improvement in profit margin, due to the increase in incentives related to achieving the sales targets from suppliers compared to the previous quarter, in addition to increase in the performance of the associate companies. |
| The reason of the increase (decrease) in the sales/ revenues during the current period compared to the same period of the last year is | Sales growth by 6.85% from existing and new stores opened during the year. |
| The reason of the increase (decrease) in the net profit during the current period compared to the same period of the last year is | Sales growth and improvement in profit margin and marketing lease activity, in addition to gains of investing the surplus cash in Islamic sharia compliant deposits as well as the recovery of impairment provision related to the subsidiary in Egypt by SR 4.1 million, despite the increase in expenses related to the new stores, mainly, finance cost of lease contracts with the sum of SR 25.3 million and the decline in the performance of the associate companies by SR 14.3 million. On the other hand, the results of the first quarter of 2022 include the Company share in the profits of Abdullah Al-Othaim Investment Company, with the sum of SR 9.3 million, then the Company derecognized profits after the Board of Directors’ decision to sell this investment. During the current period the Company had realized non-recurring capital gains with the sum of SR 96.9 million, net of zakat, from the sale of investment land in Riyadh city, compared to non-recurring capital gains with a sum of SR 701.2 million, net of zakat, last year. When eliminating the non-recurring capital gains, the growth in the Company net profits would be 3.23%. |
| Statement of the type of external auditor's report | Unmodified conclusion |
| Comment mentioned in the external auditor’s report, mentioned in any of the following paragraphs (other matter, conservation, notice, disclaimer of opinion, or adverse opinion) | N/A |
| Reclassification of Comparison Items | Some comparative figures have been restated to be consistent with the presentation of the current period. |
| Additional Information | The company changed the recognition policy of the growth incentive revenues earned from suppliers to be recorded on a quarterly basis instead of annual basis, taking into consideration the seasonality of sales, expected growth rates and returns in subsequent periods. This change came in order to comply with the requirements of IFRS (15) – “Revenues from Contracts from Customers” and IAS (34) – “Interim Financial Reporting”.
The comparative figures have been restated and re-presented to be consistent with the new policy. It is worth noting that this change affects the interim financial statements only and has no impact on the annual results. During the period of the fourth quarter, the Company opened (23) twenty three stores and shut down (1) one, compared to opening (16) sixteen during the corresponding quarter.
Earnings per share have been restated for all presented periods based on the amended number of shares of the capital amounting to 900 million shares after splitting the share into ten shares and reducing the par value of the share to one riyal pursuant to the general assembly resolution in its extraordinary meeting held on 5 June 2023.
The quarterly investors presentation will be available on the Investors relations page of the Company website, at the following link:
https://www.othaimmarkets.com/investors-ir?___store=en&___from_store=e |
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