Abdullah Al Othaim Markets Co.’s sales grew in 2023 to SAR 10.2 billion, compared to SAR 9.5 billion in 2022, while operating profit – excluding capital gains – rose by about 3.2%, said CEO Muaffaq Al Mubarah.
In statements to Al Arabiya TV, the CEO said that, despite the decline in sales of some of the company’s products, such as oils and poultry, Al Othaim successfully maintained its profit margin, through operational efficiency, indicating that the company intends to expand in the Jeddah and open new branches there.
Al Othaim witnessed an increase in rental prices, especially in major cities such as Riyadh and Jeddah. However, it has long-term contracts in Riyadh with about 140 branches. The company’s expansion in the number of branches will be limited in Riyadh, while the expansion will be in Jeddah. It is expected that with an increase in rents, there will be higher return on sales per square meter, which is normal, according to the top executive.
As for the company’s operations in Egypt, the CEO said: “Our profits in Egypt grew in 2023 by 27%, denominated in Saudi riyals and not in Egyptian pounds”, indicating that this was driven by purchasing from the Egyptian market, where the company buys and sells in the Egyptian pound, and does not import from abroad.
He pointed out that the number of the company’s branches in Egypt reached 50 by the end of 2023, revealing that Al Othaim will increase its branches in Egypt by about five to six branches in 2024.
The company posted a net profit of SAR 487.5 million for 2023, compared to SAR 1.07 billion in 2022, according to Argaam’s data.