RIYADH: Saudi Abdullah Al Othaim Markets saw its shares jump 1.4 percent almost one hour into trading on Wednesday after the wholesaler posted strong first-quarter earnings.
As food demand surged during the Ramadan season, profit rose to about SR91 million ($24 million) from SR57.68 million recorded in the same period last year.
This was driven by higher sales which increased by 17.4 percent to SR2.46 billion in the first quarter from the same period a year ago, a bourse filing revealed.
The growth in sales was “mainly due to the entry of Ramadan season in the first quarter of this year,” the company said in the filing.
“The performance of subsidiaries and associates has improved in addition to recording the company's share in the profit of Gulf Flour Milling Co.,” it added.
Still, Al Othaim noted that general and administrative costs, as well as selling and distribution expenses, weighed on results due to opening new stores.