Abdullah Al Othaim’s Q4 2019 profit misses expectations: Aljazira Cap

Abdullah Al Othaim Markets Co.’s net profit of SAR 142.2 million in the fourth quarter of 2019 missed Aljazira Capital and market estimates’ of SAR 155.4 million and SAR 154.8 million, respectively.

The company reported a revenue of SAR 2.1 billion in Q4 2019, marginally beating the brokerage’s estimate of SAR 2.09 billion.

The sales momentum seen in fiscal year 2019 is forecast to continue in FY20, driven by the opening of new stores. Al Othaim stands to benefit from increased retail demand, the report said.

“We have projected an increase in store count to 362 at the end of fiscal year (FY) 2022 from 242 in FY2019. The company’s strategy of continued expansion augurs well, enabling it to increase its market share and capitalize on the growth opportunity,” it noted.

Aljazira Capital maintained its “overweight” rating for the company and raised the target price to SAR 92.50 from SAR 88.60.