Muaffaq Mubarah, CEO ofAbdullah Al Othaim Markets Co.
Muaffaq Mubarah, CEO of Abdullah Al Othaim Markets Co., said that the company’s main operational activity witnessed growth in terms of sales and profitability, despite the decline in the company’s profits during the first quarter of 2024. 
The operating profits grew by 5.7%, while the company’s market share increased from 18.9% to 20%, the CEO explained in a statement to Al Arabiya.
The decrease in profits was due to the cost of financing, Mubarah noted, adding that financing costs are higher in the first years than the subsequent ones according to the accounting standard, affecting profitability by about SAR 4.7 million. In addition, profits were further affected by the decline of the profitability of some associate companies and the deposit returns by about SAR 2 million, and SAR 5 million, respectively.
The top executive pointed out that the cost of financing in the first years is higher according to the accounting standard because it is gradual, but the costs remain stable, indicating that the branches achieve the desired profitability within a period ranging from one to four years, depending on the branch.
Deposits are considered a side activity, Mubarah said, adding that the company has more than one option, including distributing profits, investing in deposits, or in the main activity. The company aims to balance its investment opportunities and distribute profits to investors.
During previous years, dividends were in-line with announced profits, which is evidence of positive cash flows reflected in business growth and dividends, the CEO highlighted.
According to data available on Argaam, Al Othaim reported a net profit of SAR 116.4 million in Q1 2024, a decline of 3% from SAR 120 million in the year-earlier period.
Muaffaq Mubarah, CEO ofAbdullah Al Othaim Markets Co.
Muaffaq Mubarah, CEO of Abdullah Al Othaim Markets Co., said that the company’s main operational activity witnessed growth in terms of sales and profitability, despite the decline in the company’s profits during the first quarter of 2024.
The operating profits grew by 5.7%, while the company’s market share increased from 18.9% to 20%, the CEO explained in a statement to Al Arabiya.
The decrease in profits was due to the cost of financing, Mubarah noted, adding that financing costs are higher in the first years than the subsequent ones according to the accounting standard, affecting profitability by about SAR 4.7 million. In addition, profits were further affected by the decline of the profitability of some associate companies and the deposit returns by about SAR 2 million, and SAR 5 million, respectively.
The top executive pointed out that the cost of financing in the first years is higher according to the accounting standard because it is gradual, but the costs remain stable, indicating that the branches achieve the desired profitability within a period ranging from one to four years, depending on the branch.
Deposits are considered a side activity, Mubarah said, adding that the company has more than one option, including distributing profits, investing in deposits, or in the main activity. The company aims to balance its investment opportunities and distribute profits to investors.
During previous years, dividends were in-line with announced profits, which is evidence of positive cash flows reflected in business growth and dividends, the CEO highlighted.
According to data available on Argaam, Al Othaim reported a net profit of SAR 116.4 million in Q1 2024, a decline of 3% from SAR 120 million in the year-earlier period.
