Revenue climbs ~16% YoY driven both by existing and new stores, slightly above our estimate
Abdullah Al Othaim’s revenue in 4Q 2022 grew 16% YoY to c. SAR 2.5bn, 7% more than our estimate. Both the existing and new stores drove the overall revenue higher during the quarter.
An increase in efficiency and some one-off gains boost operating and net income, beating our estimate
The company performed better than expected at the gross level as a result of which gross profit came in 19% more than our estimate. Abdullah Al Othaim registered its share of Gulf Flour Milling for the full quarter in 4Q 2022 as compared to only one month in 4Q 2021. In addition, capital gains from assets sale as well as indemnities against damaged assets boosted the operating and net income, partially. As a result, operating and net margins jumped 16% and 31%, respectively, beating our forecast by a wide margin (44% and 55%, respectively).
Maintain target price
Although details of one-off incomes are not available as of now, we believe the company has performed better than our expectations. Hence, we maintain our SAR 130.0 target price on the stock, awaiting the availability of complete details.