Almarai profit up 20% to SAR 1.67 bln in 9M 2023; Q3 at SAR 486.3 mln

Almarai Co. reported a net profit of SAR 1.67 billion in the first nine months of 2023, up 20% from SAR 1.40 billion a year earlier. 

The profit growth was attributed to a 6% rise year-on-year (YoY) in revenues as the topline grew consistently in Almarai’s the core GCC markets over the three past quarters, mainly in the group’s poultry, dairy, and bakery segments.

Operating profit leapt 22% YoY, on disciplined cost controls, stabilization of commodity costs and a sharp focus on operational excellence.

Net profit growth was also driven by capacity expansion and market share gains across multiple categories.

The third-quarter net profit grew 5% to SAR 486.3 million, from SAR 463.17 million in Q3 2022.

This was due to a 1% increase YoY in Q3 revenues on strong performance in the core GCC markets.

However, the devaluation of the Egyptian pound and a marked reduction in demand of external alfalfa sales, mainly to East Asian countries, reduced the group’s quarterly revenues by 3%, with no material impact on profitability.

Operating profit rose 11% YoY in Q3, which led to disciplined cost controls across the board, including the general & administration expenses, supported double-digit growth of 11% in operating profits.

Commodity costs continued to show signs of stabilization, although they remained at a higher level relative to historic norms, mainly corn, soya, and alfalfa.

The Q3 2023 earnings dropped 12.7% from SAR 557.08 million in the previous quarter.

Total shareholders’ equity, after minority interest, reached SAR 17.49 billion as of Sept. 30, 2023, compared to SAR 16.27 billion a year earlier.

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