On 2026-08-11 16:19:43 (Saudi Time), Abdullah Al Othaim Markets Co.(4001.SA) announced its Interim financial results for the six months ended on June 30, 2026.

Year-on-Year Performance Drivers

For the six-month period ending 30 June 2026, sales declined 3.652% YoY to SAR 5,485.58 million (from SAR 5,693.53 million), primarily driven by a 6.1% drop in retail sales in the Kingdom due to operational disruptions from the Enterprise Resource Planning (ERP) system implementation, which impacted supply chain efficiency and product availability, partially offset by growth in online channel sales. The company swung to a net loss of SAR 53.47 million from a profit of SAR 117.5 million in the prior-year period, mainly attributable to a significant surge in commercial inventory provisions to SAR 143 million (versus SAR 42 million in the same period of 2025) caused by ERP-related challenges affecting automated inventory replenishment, compounded by higher expenses associated with online sales that compressed profit margins, while an increase in the share of profits from investments in associates provided a partial offset.

Quarter-on-Quarter Performance Drivers

QoQ revenue declined 15% to SAR 2,520.39 million, primarily due to the occurrence of the Holy Month of Ramadan in the previous quarter (Q1), which had boosted prior-period sales. Net profit swung to a loss of SAR 107.13 million from a profit of SAR 53.66 million in the previous quarter, driven mainly by a sharp surge in commercial inventory provisions (SAR 107 million in Q2 2026 vs. normalized levels) stemming from ongoing ERP system implementation challenges that disrupted supply chain efficiency and automated inventory replenishment. Additionally, a decrease in the share of profits from investments in associates weighed on results, though improved performance in the real estate leasing segment partially offset the decline.

Other Items

The external auditor issued an unmodified conclusion with no additional comments, qualifications, or other matters noted. Some comparative figures have been restated to be consistent with the current period's presentation. Total shareholders' equity (after deducting minority equity) stood at SAR 1,072.5 million as at 30 June 2026, down 17.112% from SAR 1,293.92 million in the prior-year period. Loss per share for the current period was SAR -0.06, compared to SAR 0.13 in the same period of the previous year. The additional provision balance for inventory amounted to SAR 111.7 million as at 30 June 2026 to address ERP system-related challenges, in addition to normal inventory provisions of SAR 108 million as at the same date. The company stated that "these provisions have been recognized in accordance with the conservative principle and approved accounting standards" and confirmed it "will continue working on the corrective actions required to overcome these challenges and bring inventory provisions back to their normal levels." During the current period, the company opened 4 stores and shut down 1 store, compared to opening 6 stores during the same period of the previous year.

Original announcement:

https://www.saudiexchange.sa/wps/portal/saudiexchange/newsandreports/issuer-news/issuer-announcements/issuer-announcements-details/?anId=97562&anCat=1&cs=4001&locale=ar

Important Notice: The announcement information and market data in this report are sourced directly from the Saudi Exchange (Tadawul). This summary is generated by Sahm’s proprietary AI model for informational purposes only. While we strive for accuracy, it should not be construed as financial advice or an investment recommendation.