Alamar’s 9M 2022 profit slips 0.5% to SAR 87 mln; Q3 at SAR 19.7 mln

Alamar Foods Co. reported a net profit after Zakat and tax of SAR 87 million in the first nine months of 2022, a marginal decline of 0.5% from SAR 87.4 million in the prior-year period.

The nine-month net profit was hit by the SAR 13.1 million costs recorded in Q3 2022 due to the accounting treatment of the employee stock ownership plan based on the International Financial Reporting Standards (IFRS 2).

Adjusting for the employee stock ownership plan cost, net profit would jump 14.4% year-on-year (YoY) to SAR 99 million.

Meanwhile, sales for the current period increased 29% YoY.

In Q3 2022, net profit after Zakat and tax dropped 23% to SAR 19.7 million, from SAR 25.49 million in Q3 2021. The Quick Service Restaurant (QSR) operator was hurt by the SAR 13.1 million costs recorded in Q3 2022 due to the accounting treatment of the employee stock ownership plan based on the IFRS 2.

Excluding the employee stock ownership plan cost, net profit would rise 25.2% YoY to SAR 32.2 million, driven by a 24.9% YoY increase in sales.

Compared to the previous quarter, Alamar’s net profit dropped 17.7% from SAR 23.98 million.

Total shareholders’ equity, no minority interest, decreased to SAR 328.484 million as of Sept. 30, 2022, from SAR 308.897 million a year earlier.

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