By Mohammed Idries
Riyadh-Mubasher: Abdullah Al Othaim Markets plans to invest SAR 144 million ($38.40 million) and open more stores in Egypt gradually in the next period, CEO Youssef Al-Gafari told Mubasher.
He added that the company increased the number of its branches to 144, and plans to open 15 new ones this year.
“2015 net earnings were driven by a 15% rise in sales of outstanding and new branches, as well as improved profit margins and high revenues from leasing shops,” Al-Gafari said.
FY15 net income grew by 7.5% year-on-year from SAR 214.7 million ($57.25 million) to SAR 230.8 million ($61.54 million).
The CEO also said the company adopts a balanced dividend policy, taking into account the liquidity requirements of its ambitious plans, the measures to boost its financial position and satisfy customers through offering cash dividends.
“Two of Riyadh branches were shut down for the construction works of Riyadh metro project. However, the shutdowns do not have any material impacts on the company, especially amid the expansion policies as 15 branches were launched in 2015,” Al-Gafari said.
He added that Al Othaim does not have plans currently to expand in the GCC region or other markets except for Egypt.
The government’s decision to lift energy prices has a financial impact of nearly SAR 16 million on the company, which will be reflected in 2016 financial results.
“The management exerted efforts to deal with such conditions to improve the energy utilisation efficiency, rationalise spending and cut costs, which will accordingly ease the financial impact of higher energy prices,” the CEO said.
When asked about any acquisition plans, Al-Gafari said his company is keen on studying the available investment opportunities to boost its market share especially in the vertical integration. “We don’t have any opportunity to acquire competitive companies in the same field.”
Translated by Abdul Maguid Aboshahla
