Al Othaim, Jarir, Sasco, and many more post 1Q earnings

Al Othaim stumbles on markdowns, changing consumer behavior

Abdullah Al Othaim Markets reported a nearly 30% y-o-y drop in 1Q 2026 net income to SAR 53.7 mn, according to a Tadawul disclosure. Revenues for the quarter came in just under SAR 3 bn, down 5.8% y-o-y.

Behind the numbers: Higher operating costs across sales channels outweighed improved gross margins, stronger associate contributions, and higher finance lease income. Revenue was pressured by weaker branch sales amid shifting consumer behavior, while promotional cashback campaigns and supply-chain disruptions linked to the rollout of a new ERP system also weighed on performance.

Jarir Marketing’s sales boom

Upticks in retail demand helped Jarir Marketing weather rising operational costs in 1Q 2026, with the company posting a 16.7% y-o-y increase in net income to SAR 253.5 mn supported by a 14.4% y-o-y rise in revenue eto SAR 3 bn, according to its Tadawul disclosure.

Behind the numbers:The jump in sales across most sections, but especially smartphones, was enough to absorb a rise in selling and marketing, general and administrative, and non-operating expenses.

Dividends: Jarir’s board greenlit a SAR 252 mn dividend payout for 1Q 2026, equivalent to SAR 0.21 per share, to be distributed by Wednesday, 20 May, according to a separate disclosure.

Sasco suffers despite stronger sales

Sasco’s rising costs offset robust sales and investment earnings. Saudi Automotive Services (Sasco) turned to the red with a net loss of SAR 23.7 mn in 1Q 2026, compared to a net income of SAR 4.3 mn in the same period last year, according to its Tadawul disclosure. Still, revenue increased by 9.5% y-o-y to SAR 3 bn.

The decline was driven by higher cost of sales, elevated ECL, lower other income, and higher financing and zakat expenses — partially offset by stronger sales, gains on investment properties, greater investment income, and lower G&A and selling and marketing costs.

The company expanded its operations across the Kingdom. Sasco’s network grew 15% to 716 stations, and expanded its palm stores by 52% y-o-y to 324 stores, according to a separate press release (pdf).

Flynas’ net income falls despite higher revenue in 1Q

Capacity growth supported Flynas’ top line, but rising costs weighed on profitability. The low-cost carrier saw its net income fall 20.3% y-o-y to SAR 117.9 mn in 1Q 2026, according to its financial release. Revenue rose 9.7% y-o-y to SAR 2 bn during the same period, buoyed by capacity expansion and continued passenger demand across the airline’s network.

Behind the numbers: The bottom-line dip was driven by higher fuel costs, alongside increased handling and navigation charges, elevated maintenance expenses from greater operating activity, and additional wet-lease costs.

Acquisitions pay off for BinDawood

A push into high-margin segments powered earnings for retail giant BinDawood Holding in 1Q 2026. Net income increased 8.4% y-o-y to SAR 71.3 mn, absorbing higher finance costs tied to recent acquisitions and new lease obligations, while revenue rose 8.2% y-o-y to SAR 1.81 bn, it said in a Tadawul disclosure and earnings release (pdf).

Growth came from several acquired and expanding fronts this quarter. BinDawood and Danube grocery stores benefited from stronger customer engagement and loyalty campaigns, while the pharmacy business continued expanding following the acquisition of Zahrat Al Rawdah. Distribution also picked up pace after the integration of Toy Triangle and the addition of brands including Samsung, while the tech arm kept growing through Ykone’s acquisition of Mirror Mirror. So far in 2026, the group has opened three new grocery stores and eight pharmacy locations.

More takeovers in the pipeline: The acquisitions of Vaza Foods Company and the UAE’s Wonder Bakery are both expected to close by the end of 2Q 2026, which will form a new food processing division.

Dividends:The company’s board signed off on an SAR 45.7 mn dividend payout for 2H 2025 at SAR 0.04 apiece, to be distributed on 21 June.

Regional tension, margin squeeze push Cenomi Retail into the red

Cenomi Retail swung to a net loss of SAR 47.3 mn in 1Q 2026 as geopolitical tension and a softer Ramadan season weighed on its domestic operations, according to an earnings release (pdf). While revenue grew 2.4% y-o-y to SAR 1.4 bn, the bottom line was hit by promotional intensity, rising logistics costs, and the absence of a one-off divestment gain recorded the previous year.

International markets remained a bright spot, with revenue climbing 15.4% y-o-y to SAR 347.8 mn, powered by nearly 20% like-for-like growth in Inditex brands abroad. Domestic conditions were tougher, with Saudi revenues down 0.4% y-o-y on the back of Ramadan’s earlier timing and the war’s effect on Zara and Inditex’s performance.

The breakdown: Zara and other core fashion brands saw their sales dip 7.1% amid geopolitical pressure — a 20.8% jump in electronics, beauty, and sports revenues helped cushion the blow. The F&B division also saw revenues slip 12.9% following the exit of several brands and temporary raw material shortages linked to the war’s disruption of shipments.

Some benefits from a leaner footprint: Despite the headline loss, the group improved store productivity, with revenue per store rising 13.5% y-o-y as the group trimmed its network to 730 stores, focusing on higher-performing locations. Online sales also held steady, reaching SAR 117 mn.

Looking ahead: Cenomi expects a progressive recovery in earnings throughout 2026, supported by operational tightening and selective expansion in projects like Westfield Riyadh and Jeddah.

Dallah Healthcare sees lower income despite revenue growth

Dallah Healthcare kicked off 1Q 2026 with a mixed performance, with strong revenue growth on one side and a sharp drop in net income on the other, according to a Tadawul disclosure and an earnings release (pdf). Net income fell 45.7% y-o-y to SAR 84.5 mn, while revenues grew 21.7% y-o-y to SAR 1 bn. The gap largely came down to a SAR 51 mn one-off investment gain recorded during 1Q 2025. Strip that out, and the underlying picture looks steadier.

Operationally, Dallah looks healthy. Patient visits rose 27.5% to 936k, driven mainly by the integration of Dallah Al Khobar and Dallah Al Ahsa hospitals. The Central Region continued to do the heavy lifting, reinforcing its role as the group’s core growth engine.

The breakdown:By segment, medical facility services remained the biggest revenue contributor at SAR 748 mn, while pharma sales added SAR 225 mn. That mix of revenue streams helped soften the usual seasonal slowdown during the school holidays and Eid Al Fitr.

Dividends:The healthcare group is distributing SAR 50.5 mn in dividends for the first quarter at SAR 0.5 apiece on 4 June.

A tough 1Q for Arabian Drilling

Arabian Drilling’s net income plunged 90.6% y-o-y to SAR 7.1 mn in 1Q 2026, as rig suspensions and the absence of last year’s rig movement weighed on results, according to a disclosure. Revenue dipped 9.8% y-o-y to SAR 821.6 mn as operations were hit by lower utilization — which fell to 81.7% from 83.3% a year prior — with some offshore rigs temporarily suspended amid geopolitical tensions, according to a press release (pdf).

Backlog builds despite near-term softness: Despite the domestic drag, the group’s backlog grew 31% y-o-y to SAR 12.5 bn. Arabian Drilling secured three major land contract extensions during the quarter, and is awaiting the outcome of an 11-rig gas LSTK tender with SLB, expected in 2Q this year, alongside a three-month extension for the related rigs. The company also started its first drilling operation outside the Kingdom in April.

The forward view: Performance is expected to remain under pressure in the near term, with 2Q revenues projected to decline by up to 12% due to the ongoing offshore suspensions. Consequently, full-year capex has been revised down to SAR 700 mn.

But the medium-term outlook is cautiously optimistic: “While near-term dynamics related to offshore suspensions may temporarily constrain performance, we expect margin progression to resume as activity levels normalize,” CFO Farid Mustafayev said.

Red Sea back in black despite topline slip

Red Sea International swung back into the black in 1Q 2026, posting a net income of SAR 2.5 mn, up from a net loss of SAR 11.2 mn in the same quarter last year, it said in a disclosure to Tadawul. Revenue dropped around 10% y-o-y to SAR 631 mn during the quarter on the back of slower execution of projects.