Al Othaim's sales growth boosts market share, expansions continuing in targeted areas: CEO

Logo of Abdullah Al Othaim Markets

Abdullah Al Othaim Markets Co.'s sales grew by 7% and 10.3% in Q2 and H1 2023, respectively, which boosted the company's market share, said CEO Muaffaq Mabarah, indicating that the growth was higher than the sector average.

He told Argaam that the company invested its available cash in Shariah-compliant credit deposits, which contributed to its profit leap. This is in addition to achieving nearly SAR 97 million capital gains from the sale of investment land in Riyadh.

Mabarah also pointed out that the company's branches had reached 323 by the end of the second quarter of this year, which helped boost sales and profits, highlighting that the Central Province is the main contributor to revenues.

As for the company's plans and objectives for the coming period, the CEO stated that Al Othaim is working on developing the logistical, technical and marketing infrastructure, focusing, in particular, on its loyalty program.

Al Othaim is also bidding to continue to bolster its customer count and marketing strategy. In the previous quarter, it signed cooperation agreements with leading firms in the loyalty program field such as stc and Al Rajhi Bank to allow clients to redeem their reward points at Al Othaim’s branches, aiming to provide better services, according to the top executive.

He stressed that the company continues to expand in the target and fastest growing areas, to enhance its market share, seeking to top its peers by increasing its services and products offered to its customers at lower costs.

This is besides building strategic relationships with its partners and suppliers, while making optimal use of its resources, which is bound to bode well for the company’s financials for the third and fourth quarters of this year, the CEO added.

Al Othaim posted SAR 259.4 million profit for H1 2023, compared to SAR 151.8 million in the same period last year. Further, Q2 profits amounted to SAR 139.4 million.