Almarai’s poultry ops widen Q1 losses to SAR 104.3 mln

Almarai Co., Saudi Arabia’s largest dairy and juice producer, saw losses at its poultry operations widen by 69 percent to SAR 104.3 million in first quarter of 2016, compared to SAR 61.7 million from the same period a year earlier, the company’s financials revealed.

The losses came despite a 2 percent rise year-on-year (YoY) in the sector’s sales volumes, which amounted to SAR 330 million.

Almarai’s gross profit margins dropped to 35.5 percent during Q1 2016, compared to 36.6 percent last year, due to higher costs of sales, power, and water. Overall, the company posted SAR 308.5 million in net profit for Q1, a 1 percent rise YoY.

Looking at the poultry unit’s history, Almarai recorded its worst losses in Q1-2014 at SAR 133 million after launching the project in the second half of 2013. The unit’s capacity was estimated at 200 million chickens and 300 million eggs per year.