Riyadh – Mubasher: Abdullah Al Othaim Markets on Thursday said it achieved a net profit of SAR 47.01 million ($12.5 million) in the first quarter of 2016, registering a slight decline of 3.85% from SAR 48.89 million ($13 million) reported in Q1-15.
The year-on-year profit fall was due to a precautionary provision taken by a 55% owned subsidiary following a fire in one of its plants in 2015, resulting in the total damage of the plant’s fixed assets, the company said in a statement to the Saudi Stock Exchange (Tadawul).
It added that “due to delay in receiving the civil defense report which had not yet been received as of the date of these consolidated financial statements the provision was taken at full value of the lost assets.”
When the subsidiary receives the indemnity from the insurance company, the provision will be recovered to the extent of the amount collected from the insurance firm, the statement added.
The provision amounted to SAR 11.33 million, of which SAR 2.75 million were recorded in 2015, the company noted, adding that the remainder amounting to SAR 8.6 million has been included in Q1-16.
Apart from the one-off loss by the subsidiary, Al Othaim reported 16% growth in sales at its new and established branches added to a rise in revenues from real estate leasing, benefitting operational profits.
