Riyadh – Mubasher: Abdullah Al Othaim Markets Company generated SAR 60.69 in net profits during the third quarter (Q3) of this year, a drop of 19.5% when compared to SAR 75.38 million in the prior-year quarter.
Revenue for the quarter ended in September 2020 reached SAR 1.81 billion, down by 6.4% yearly, according to a bourse statement on Monday.
The drop in sales was driven by a lower customer demand after the increase in the value-added tax (VAT) rate to 15% from 5% and the conversion of education in schools to distance-learning as a precaution against COVID-19. This resulted in losing the "back-to-school" season sales, despite the improvement in gross margin.
Meanwhile, the negative impact of the coronavirus pandemic on the company’s real estate activity and the operations of subsidiaries and associate companies continued.
During the period from January to September of 2020, the net earnings rose by 41% to SAR 285.5 million.
