Alamar 9M 2023 profit dips 40% to SAR 52 mln; Q3 at SAR 20.1 mln

Alamar Foods Co. reported a 40% profit fall in the first nine months of 2023 to SAR 52 million from SAR 86 million a year earlier.

The company cited a 4.6% decline year-on-year (YoY) in total sales value upon applying the current foreign exchange rate.

The sales value fell by SAR 68 million in Egypt and Lebanon due to the foreign currency devaluation, in addition to the absence of SAR 9 million in sales at EXPO Dubai.

On the other hand, total sales grew by 3.9% YoY, applying the constant foreign exchange rate.

Total sales saw 5% YoY growth, applying the constant foreign exchange rate and excluding EXPO Dubai sales in the first quarter of 2022.

Operating cash flows reached SAR 149 million.

The third-quarter bottom line jumped 7% year-on-year (YoY) to SAR 20.1 million, thanks to a 3.3% YoY rise in sales applying the constant foreign exchange rate.

Alamar’s net profit growth was also supported by the lower cost of the employee stock ownership program recorded in the current quarter, according to the program's applicable accounting treatment.

Operating cash flows came in at SAR 79 million in the three-month period.

Meanwhile, total sales declined by 4.4% YoY, applying the constant foreign exchange rate.

Net profit rose 14.7% from SAR 17.5 million in Q2 2023 as sales and gross profit increased by 4.3% and 1.9% quarter-on-quarter (QoQ), respectively.

Total shareholders’ equity, no minority interest, increased to SAR 332 million as of Sept. 30, 2023, from SAR 329 million in the prior-year period.

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