Profit statements

Saudi Arabia’s Almarai Reports 13% Increase in Third Quarter Profits on Higher Revenues

Saudi Arabia’s Almarai, the Middle East’s largest dairy company, reported a more than 13% increase in net profit in the third quarter on the back of higher revenues, as the Arab world’s largest economy continues to grow. recover from the slowdown induced by Covid-19 .

Consolidated profit attributable to shareholders for the three-month period ending September 30 climbed to 463.1 million Saudi riyals ($123.49 million), from 409 million riyals in the same period last year. last, the company said in a statement. statement sunday on the Saudi Tadawul stock exchange, where its shares are traded.

Revenue during the period increased by around 21% to 4.76 billion riyals, mainly due to higher sales in its poultry and bakery divisions.

“Positive revenue growth was evident across all categories due to improved business conditions following Covid-19 movement restrictions, the opening of educational institutions and higher visitor numbers to the region. “, said the company.

Saudi Arabia’s economy continues to recover from the pandemic thanks to the easing of Covid-19 restrictions and rising oil prices.

The kingdom’s seasonally adjusted S&P Global Purchasing Managers’ Index recorded a reading of 56.6 in September, indicating growth in the country’s non-oil private sector economy.

Output and new orders in the month rose sharply on robust demand, despite inflation fears and global macroeconomic headwinds, according to the PMI results.

The kingdom’s economy is expected to grow at the fastest pace in a decade and could be one of the fastest growing economies in the world this year, the International Monetary Fund said in August.

The IMF estimates that the kingdom’s economy will grow by 7.6% in 2022 and 3.7% in 2023 after growing 3.2% last year.

The World Bank estimates that the country’s economy will grow by 7% this year, while Jadwa Investment expects it to grow by 7.7% in 2022, driven by rising oil prices.

Sales in all categories, including dairy and juice, bakery and poultry, rose during the period, boosting Almarai’s profit. Bakery sales rose about 32%, while poultry sales rose 43.2%, the company said.

Dairy and juice sales jumped 15.4%, but were “partly offset by cost inflation, primarily in dairy and animal feed”, he said.

Almarai’s nine-month profit rose about 10% to 1.4 billion riyals from the company’s 1.2 billion riyals in the same period last year. Revenues increased by almost 20% to reach 13.8 billion riyals.

“We expect the positive momentum to continue, but at a slower pace going forward,” the company said.

“The main risk remains soaring cost inflation for dairy and animal feed. We continue to see parts of the global supply chain remain under strain. Almarai will continue to manage this risk by improving its operations hedging and taking advantage of its equity hedging, if any.”

Updated: October 09, 2022, 07:39