Saudi food retailer Abdullah Al Othaim Markets posts surge in profit on higher demand

Saudi wholesale and retail food company Abdullah Al Othaim Markets posted a 30.84% surge in net profit for 2020 on higher demand during COVID-19 lockdowns.

Net profit reached 450.97 million riyals ($120.1 million) compared to 344.67 million riyals in 2019, the company reported in a bourse filing on Monday (March 22).

Sales declined in the second half of last year but still rose by 7.91% to 8.81 billion riyals.

Food and groceries did well for the company but its real estate activity was negatively affected in the first half of 2020 due to discounts and exemptions to tenants as compensation for the lockdown periods, it said.

Saudi wholesale and retail food companies posted strong profits for the pandemic year. Big companies Savola reported a 91.51% increase and Almarai earned a 9.5% rise.

Foodservice companies, however, took a hit due to closure of restaurants and other dine-in establishments. Herfy reported a 73% drop in profit.

© SalaamGateway.com 2021 All Rights Reserved