Alamar profit dips 53% to SAR 31.9 mln in H1 2023; Q2 at SAR 17.8 mln

Alamar Foods Co. reported a net profit of SAR 31.9 million in H1 2023, a fall of 53% from SAR 67.2 million a year earlier. 

The company recorded. 4.7% decline year-on-year (YoY) in sales, impacted by the currency devaluation in Egypt and Lebanon by SAR 46.5 million, and also the absence of SAR 8.9 million sales in EXPO Dubai.

Alamar’s half-year results were also impacted by inflation in the cost of sales from H2 2022, and the cost of the employee stock ownership plan amounted to SAR 6.4 million. By contrasts, the total number of orders grew by 2.8% YoY. Alamar generated operating cash flows of SAR 70 million in the current period from an EBITDA conversion ratio of 105%.

The second-quarter net profit dropped 26% to SAR 17.8 million from SAR 23.9 million in Q2 2022. Sales decreased by 1.3% YoY on the currency devaluation in Egypt and Lebanon by SAR 22.7 million, and the application of the constant foreign exchange rate. The Q2 profit was hurt by inflation in the cost of sales from H2 2022, and the cost of the employee stock ownership plan amounted to SAR 3.1 million. By contrasts, the total number of orders grew by 3.5% YoY.

The Q2 net earnings climbed 24.3% from SAR 14.32 million backed by improved sales performance and gross profit, which jumped 11.8% quarter-on-quarter (QoQ) Gross profit margins also expanded by 290 basis points. The gross profit is expected to continue growth in H2 2023.

Shareholders’ equity, after minority interest, rose marginally to SAR 326.80 million as of June 30, 2023, from SAR 345.99 million a year earlier.

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