Al Othaim H1 2023 profit jumps to SAR 259.4 mln; Q2 at SAR 139.4 mln on land sale

Al Othaim H1 2023 profit jumps to SAR 259.4 mln; Q2 at SAR 139.4 mln on land sale

10/08/2023 Argaam Exclusive

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Abdullah Al Othaim Markets Co. posted a 70.9% rise in H1 2023 net profit to SAR 259.4 million from SAR 151.8 million in the year-earlier period.



Financials (M)

Item 6m 2022 6m 2023 Change‬
Revenues 4,716.91 5,201.24 10.3 %
Gross Income 975.82 1,082.42 10.9 %
Operating Income 124.39 144.67 16.3 %
Net Income 151.82 259.44 70.9 %
Average Shares 900.00 900.00 -
EPS (Riyals) 0.17 0.29 70.9 %

The company reported a 10.27% increase year-on-year (YoY) in sales from existing and new stores, in addition to improved gross profit margins and real estate activity. It recorded a capital gain after Zakat of SAR 96.9 million from the sale of an investment land plot in Riyadh.

 

In addition, Al Othaim reported gains from investing cash liquidity in Shariah-compliant bank deposits.

 

On the other hand, it recorded an increase in selling and marketing expenses triggered by the new openings, mainly the financing cost of lease contracts pursuant to the International Financial Reporting Standard (IFRS) 16 and the underperformance of associates.

 

The second-quarter net profit more than doubled to SAR 139.4 million from SAR 50 million in Q2 2022. Al Othaim reported sales growth of 7.33% YoY from existing and new branches, as well as better gross profit margins.

 

The company also made gains from investing cash liquidity in Shariah-compliant bank deposits and recorded capital gains of SAR 96.9 million after Zakat from selling a land plot.

 

This was despite an increase in selling and marketing expenses triggered by the new openings, mainly the financing cost of lease contracts pursuant to IFRS 16 and the underperformance of associates.

 

The grocery chain’s net profit climbed 16.2% from SAR 120 million in Q1 2023 on a SAR 96.9 million capital gain, improved gross margins and leasing activities.



Current Quarter Comparison (M)

Compared With The
Item Q2 2022 Q2 2023 Change‬
Revenues 2,254.52 2,419.84 7.3 %
Gross Income 468.72 508.28 8.4 %
Operating Income 40.45 42.65 5.4 %
Net Income 50.04 139.43 178.6 %
Average Shares 900.00 900.00 -
EPS (Riyals) 0.06 0.15 178.6 %

Shareholders’ equity, after minority interest, reached SAR 1.41 billion by the end of H1 2023, compared to SAR 1.33 billion in the year-ago period.



Financial results (Million)

Period Revenues Change Gross Income Change Net Income Change EPS(Riyal)
Q1 2014 1,222.98 14.7 % 204.66 24.7 % 46.47 13.9 % 0.05
Q2 2014 1,511.39 30.2 % 219.39 24.4 % 51.79 30.3 % 0.06
Q3 2014 1,208.79 1.3 % 195.07 (2.2 %) 42.29 0.8 % 0.05
Q4 2014 1,308.74 12.9 % 252.01 9.0 % 74.23 6.0 % 0.08
Q1 2015 1,408.03 15.1 % 212.36 3.8 % 48.89 5.2 % 0.05
Q2 2015 1,725.54 14.2 % 247.99 13.0 % 55.66 7.5 % 0.06
Q3 2015 1,348.87 11.6 % 221.39 13.5 % 37.09 (12.3 %) 0.04
Q4 2015 1,553.36 18.7 % 316.73 25.7 % 89.23 20.2 % 0.10
Q1 2016 1,606.16 14.1 % 265.48 25.0 % 46.62 (4.6 %) 0.05
Q2 2016 1,976.23 14.5 % 312.31 25.9 % 49.76 (10.6 %) 0.06
Q3 2016 1,569.57 16.4 % 271.63 22.7 % 36.19 (2.4 %) 0.04
Q4 2016 1,907.19 22.8 % 362.34 14.4 % 95.50 7.0 % 0.11
Q1 2017 1,696.23 5.6 % 319.69 20.4 % 60.15 29.0 % 0.07
Q2 2017 1,935.88 (2.0 %) 356.38 14.1 % 71.21 43.1 % 0.08
Q3 2017 1,627.85 3.7 % 318.56 17.3 % 150.62 316.2 % 0.17
Q4 2017 1,971.19 3.4 % 444.98 22.8 % 167.52 75.4 % 0.19
Q1 2018 1,798.26 6.0 % 341.54 6.8 % 67.26 11.8 % 0.07
Q2 2018 2,022.47 4.5 % 375.18 5.3 % 74.11 4.1 % 0.08
Q3 2018 1,744.69 7.2 % 339.78 6.7 % 54.31 (63.9 %) 0.06
Q4 2018 1,939.04 (1.6 %) 474.84 6.7 % 106.92 (36.2 %) 0.12
Q1 2019 1,959.32 9.0 % 386.48 13.2 % 68.34 1.6 % 0.08
Q2 2019 2,171.10 7.3 % 394.15 5.1 % 58.73 (20.7 %) 0.07
Q3 2019 1,936.92 11.0 % 400.01 17.7 % 75.38 38.8 % 0.08
Q4 2019 2,098.53 8.2 % 512.27 7.9 % 142.23 33.0 % 0.16
Q1 2020 2,379.50 21.4 % 459.32 18.8 % 99.55 45.7 % 0.11
Q2 2020 2,574.43 18.6 % 512.15 29.9 % 125.25 113.3 % 0.14
Q3 2020 1,812.81 (6.4 %) 411.63 2.9 % 60.69 (19.5 %) 0.07
Q4 2020 2,044.77 (2.6 %) 528.05 3.1 % 165.48 16.3 % 0.18
Q1 2021 2,097.15 (11.9 %) 419.22 (8.7 %) 57.68 (42.1 %) 0.06
Q2 2021 2,171.27 (15.7 %) 400.49 (21.8 %) 47.93 (61.7 %) 0.05
Q3 2021 2,000.74 10.4 % 400.94 (2.6 %) 44.87 (26.1 %) 0.05
Q4 2021 2,134.42 4.4 % 565.18 7.0 % 149.64 (9.6 %) 0.17
Q1 2022 2,462.38 17.4 % 507.10 21.0 % 101.78 76.5 % 0.11
Q2 2022 2,254.52 3.8 % 468.72 17.0 % 50.04 4.4 % 0.06
Q3 2022 2,340.54 17.0 % 481.25 20.0 % 756.90 1586.9 % 0.84
Q4 2022 2,492.10 16.8 % 628.55 11.2 % 170.80 14.1 % 0.19
Q1 2023 2,781.51 13.0 % 574.25 13.2 % 120.01 17.9 % 0.13
Q2 2023 2,419.84 7.3 % 508.28 8.4 % 139.43 178.6 % 0.15

Profitability

Period Gross Margin OIBDA Margin Net Margin Before Unusual Items
Q1 2014 17.14 % 4.57 % 4.18 %
Q2 2014 16.80 % 4.65 % 4.13 %
Q3 2014 16.67 % 4.66 % 4.13 %
Q4 2014 16.59 % 4.81 % 4.09 %
Q1 2015 16.16 % 4.69 % 3.99 %
Q2 2015 16.06 % 4.53 % 3.91 %
Q3 2015 16.12 % 4.45 % 3.73 %
Q4 2015 16.54 % 4.58 % 3.83 %
Q1 2016 16.87 % 4.62 % 3.81 %
Q2 2016 17.21 % 4.44 % 3.57 %
Q3 2016 17.39 % 4.33 % 3.44 %
Q4 2016 17.17 % 4.40 % 3.42 %
Q1 2017 17.71 % 4.66 % 3.44 %
Q2 2017 18.43 % 4.91 % 3.76 %
Q3 2017 18.93 % 5.13 % 3.93 %
Q4 2017 19.91 % 5.69 % 4.67 %
Q1 2018 19.93 % 5.61 % 4.70 %
Q2 2018 19.95 % 5.70 % 4.68 %
Q3 2018 19.92 % 5.61 % 4.66 %
Q4 2018 20.41 % 5.79 % 4.13 %
Q1 2019 20.56 % 6.26 % 4.05 %
Q2 2019 20.41 % 6.59 % 3.78 %
Q3 2019 20.68 % 7.38 % 3.95 %
Q4 2019 20.73 % 7.79 % 4.22 %
Q1 2020 20.57 % 7.86 % 4.38 %
Q2 2020 20.96 % 8.68 % 4.92 %
Q3 2020 21.38 % 8.76 % 4.82 %
Q4 2020 21.69 % 8.99 % 5.04 %
Q1 2021 21.94 % 8.77 % 4.72 %
Q2 2021 21.65 % 7.84 % 4.00 %
Q3 2021 21.03 % 7.40 % 3.72 %
Q4 2021 21.25 % 7.16 % 3.57 %
Q1 2022 21.37 % 7.32 % 3.93 %
Q2 2022 21.94 % 7.34 % 3.91 %
Q3 2022 22.00 % 7.24 % 3.69 %
Q4 2022 21.84 % 7.25 % 3.77 %
Q1 2023 21.81 % 7.31 % 3.84 %
Q2 2023 21.85 % 7.32 % 3.67 %


Per Share Data (Riyal)

Compared With The
Period Shares Outstanding (M) EPS (Riyal) Adjusted EPS (Riyal) Book Value (BV)
Q1 2014 900.00 0.22 0.22 0.95
Q2 2014 900.00 0.23 0.23 0.93
Q3 2014 900.00 0.23 0.23 0.98
Q4 2014 900.00 0.24 0.24 1.06
Q1 2015 900.00 0.24 0.24 1.11
Q2 2015 900.00 0.25 0.25 1.09
Q3 2015 900.00 0.24 0.24 1.13
Q4 2015 900.00 0.26 0.26 1.23
Q1 2016 900.00 0.25 0.26 1.17
Q2 2016 900.00 0.25 0.26 1.23
Q3 2016 900.00 0.25 0.26 1.27
Q4 2016 900.00 0.25 0.27 1.37
Q1 2017 900.00 0.27 0.27 1.44
Q2 2017 900.00 0.29 0.30 1.41
Q3 2017 900.00 0.42 0.31 1.58
Q4 2017 900.00 0.50 0.38 1.66
Q1 2018 900.00 0.51 0.38 1.74
Q2 2018 900.00 0.51 0.39 1.67
Q3 2018 900.00 0.40 0.39 1.73
Q4 2018 900.00 0.34 0.34 1.84
Q1 2019 900.00 0.34 0.35 1.79
Q2 2019 900.00 0.32 0.33 1.56
Q3 2019 900.00 0.34 0.35 1.64
Q4 2019 900.00 0.38 0.38 1.65
Q1 2020 900.00 0.42 0.42 1.61
Q2 2020 900.00 0.49 0.49 1.75
Q3 2020 900.00 0.48 0.48 1.51
Q4 2020 900.00 0.50 0.49 1.69
Q1 2021 900.00 0.45 0.45 1.45
Q2 2021 900.00 0.37 0.36 1.51
Q3 2021 900.00 0.35 0.34 1.36
Q4 2021 900.00 0.33 0.33 1.52
Q1 2022 900.00 0.38 0.38 1.42
Q2 2022 900.00 0.38 0.38 1.49
Q3 2022 900.00 1.18 0.38 2.13
Q4 2022 900.00 1.20 0.40 1.56
Q1 2023 900.00 1.22 0.42 1.41
Q2 2023 900.00 1.32 0.41 1.57

Multiple Ratios (End of Period Price)

Compared With The
Period P/E Adjusted P/E Price/book
Q1 2014 20.10 20.10 4.67
Q2 2014 22.80 22.80 5.73
Q3 2014 24.55 24.55 5.88
Q4 2014 22.06 22.06 4.97
Q1 2015 21.92 21.92 4.75
Q2 2015 21.91 21.91 4.93
Q3 2015 19.12 19.12 4.06
Q4 2015 17.34 17.34 3.62
Q1 2016 16.93 16.32 3.67
Q2 2016 20.21 19.45 4.07
Q3 2016 15.47 14.89 3.01
Q4 2016 19.50 18.44 3.61
Q1 2017 20.49 20.12 3.83
Q2 2017 19.67 19.34 4.06
Q3 2017 14.62 19.58 3.88
Q4 2017 12.31 16.40 3.70
Q1 2018 15.18 20.11 4.44
Q2 2018 14.73 19.47 4.51
Q3 2018 17.30 17.88 4.04
Q4 2018 20.88 20.41 3.81
Q1 2019 21.37 20.89 4.02
Q2 2019 24.19 23.62 4.98
Q3 2019 24.03 23.50 5.03
Q4 2019 21.28 21.28 4.93
Q1 2020 22.22 22.22 5.76
Q2 2020 22.74 22.74 6.40
Q3 2020 27.27 27.27 8.57
Q4 2020 24.51 24.89 7.25
Q1 2021 27.81 28.28 8.70
Q2 2021 33.64 34.35 8.21
Q3 2021 32.07 32.79 8.30
Q4 2021 32.45 32.45 7.12
Q1 2022 30.59 30.59 8.23
Q2 2022 26.82 26.82 6.94
Q3 2022 10.49 32.74 5.79
Q4 2022 8.67 25.98 6.65
Q1 2023 10.49 30.43 9.06
Q2 2023 10.57 34.05 8.87

Business Segments (Million)

Compared With The
Period Retail and wholesale Head office and leasing and others Others
Q1 2014 1,222.98 24.03 -
Q2 2014 1,511.39 22.85 -
Q3 2014 1,208.79 26.42 -
Q4 2014 1,308.74 22.64 -
Q1 2015 1,408.03 26.15 -
Q2 2015 1,725.54 27.56 -
Q3 2015 1,348.57 26.93 -
Q4 2015 1,553.66 30.55 -
Q1 2016 1,640.02 28.03 -
Q2 2016 2,020.19 28.36 -
Q3 2016 1,583.28 28.54 -
Q4 2016 1,928.23 38.64 -
Q1 2017 1,875.71 - -
Q2 2017 2,165.24 - -
Q3 2017 1,750.81 9.20 -
Q4 2017 2,189.82 - -
Q1 2018 1,772.52 - 25.74
Q2 2018 1,987.55 - 34.92
Q3 2018 1,701.84 - 42.85
Q4 2018 1,897.55 - 52.15
Q1 2019 1,902.26 - 57.40
Q2 2019 2,113.62 - 57.98
Q3 2019 1,871.89 - 65.47
Q4 2019 2,028.50 - 68.77
Q1 2020 2,307.18 - 72.31
Q2 2020 2,508.53 - 65.89
Q3 2020 1,750.05 - 62.76
Q4 2020 1,987.30 - 54.14
Q1 2021 2,042.29 - 54.85
Q2 2021 2,117.96 - 53.31
Q3 2021 1,949.68 - 51.17
Q4 2021 2,084.42 - 50.01
Q1 2022 2,410.51 - 51.87
Q2 2022 2,194.53 - 59.99
Q3 2022 2,275.72 - 64.82
Q4 2022 2,428.34 - 63.76
Q1 2023 2,721.79 - 59.61
Q2 2023 2,359.17 - 60.67

Analysts Estimates (Million)

Item Q2 2023 (e) Q2 2023 (a) Change‬
Average 69.58 139.43 100.40 %

Estimates vs Actual (Million)

Item Q2 2023 (e) Q2 2023 (a) Change
HSBC 100.00 139.43 39.4 %
Goldman Sachs 81.00 139.43 72.1 %
OSOOL AND BAKHEET 71.70 139.43 94.5 %
Al Rajhi Capital 64.00 139.43 117.9 %
SNB Capital 63.40 139.43 119.9 %
AlJazira Capital 62.60 139.43 122.7 %
U-Capital 58.90 139.43 136.7 %
Hermes 55.00 139.43 153.5 %

Current
Market Cap (M Riyal) 10,152.00
Enterprise Value (EV) (M) 9,818.02
Shares Outstanding ((M)) 900.00
EPS ( Riyal) (TTM) 0.54
Book Value (BV) ( Riyal) 1.33
Par Value ( Riyal) 1.00
Adjusted P/E (Last12) 26.47
P/E (TTM) 20.84
Price/book 8.48
Return on Average Assets (%) (TTM) 7.4
Return on Average Equity (%) (TTM) 39.5

Share Price

11.28
(0.04) (0.35 %)

Abdullah Al Othaim Markets Co. (A.OTHAIM MARKET)


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