Riyadh – Mubasher: Abdullah Al Othaim Markets posted net profits of SAR 36.64 million for the third quarter of 2016, down by 1.21% from SAR 37.09 million for the same period a year earlier.
As for the first nine months of 2016, the company witnessed net profits of SAR 134 million, down by 5.43% from SAR 142 million for year-ago period.
Operating profit fell 7.7% year-on-year in Q3-16 to SAR 29.8 compared to SAR 32.3 million, while sales grew 17.4% in Q3.
The company attributed profits decline to rising selling and distributing expenses especially labor costs and campaign expenses resulting from outlets growth, Albilad Capital said.
“We expect the company’s sales to reach SAR 7,037 million in FY16 with a bottom line of SAR 225 million, supported by the last quarter of the year that constitutes of the biggest chunk of net income representing 39% in 2015,” according to the report.
The research firm also expected continuing growth in sales as a result of the defensive nature of the sector and the expansions in the number of outlets the company is going through.
Albilad Capital maintain their valuation at SAR 104.4 per share, with an “Overweight” recommendation on Al Othaim stock.
