1Q26 First Take: Higher Opex Weighs on Bottom-Line

Abdullah Al Othaim Markets Co. reported a 30% year-on-year decline in 1Q26 net profit to SR54mn, missing Goldman Sachs estimates due to revenue softness and higher operating expenses. The company maintained its Neutral rating but highlighted ongoing margin pressure from expansion costs.

Key Takeaways

• 1.Abdullah Al Othaim Markets reported a 1Q26 net income of SR54mn, a 30% year-on-year decline, which was 7% below Goldman Sachs' estimates.
• 2.Revenue decreased by approximately 6% year-on-year to SR3.0bn, driven by shifts in consumer behavior and supply chain issues related to a new ERP program.
• 3.Operating margins fell by 90 basis points to 2.5% as a result of increased operating costs across multiple sales channels.

Table of Contents

• First Take
• Disclosure Appendix
• Reg AC
• GS Factor Profile
• M&A Rank
• Quantum
• Disclosures
• Company-specific regulatory disclosures
• Price target and rating history chart(s)
• Regulatory disclosures
• Global product; distributing entities
• General disclosures

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