Leading Saudi food conglomerate Almarai has registered a robust growth in its net profits which soared to SAR692.22 million ($184.52 million) in the first quarter (Q1) of 2024, up 9% from SAR635.05 million ($169.28 million) in Q1-23.
Revenues increased by 7.73% to SAR5.458 billion in Q1-24 from SAR5.066 billion Q1, 2023, according to the interim consolidated financial results.
This was mainly due to strong volume growth, that was attributed to the positive contribution from the dairy and poultry categories, the company said in its filing to Saudi bourse Tadawul.
The growth in net profits and revenues was attributed to disciplined cost control, favourable product mix, and stabilised commodity costs.
The earnings per share (EPS) amounted to SAR0.70 in January-March 2024, higher year-on-year (YoY) than SAR0.65.
On a quarterly basis, Almarai said its net profits in Q1-2024 surged by 86.72% from SAR370.71 million in Q4-2023, while the revenues jumped 10.95% from SAR4.919 billion. This was mainly due to immense contribution from the dairy and juice, bakery and poultry section, it said.
On the solid Q1 performance, Almarai board said it was delighted with the positive revenue growth in all product categories and in all geographies, supported by higher volume growth related to seasonal adjustments in consumption patterns.
"We expect this positive momentum to continue at the top line, driven by stable macroeconomic momentum and improved tourism in general," it stated.
This strong group performance was able to absorb the adverse impact of Egyptian pound devaluation in the current quarter, which was well managed at local operational level.
"In addition, dairy and feed commodities continue to remain stable, despite some negative impacts from international shipping lines. Almarai will continue to manage these risks by optimizing its hedging activities and by leveraging its inventory cover, where appropriate," it added.
Last month, TradeArabia had reported that Almarai had unveiled its investment strategy for the next five years, 2024-2028, in bid to strengthen its leading position as the largest vertically integrated dairy company in the world, and the largest in the production and distribution of food and beverages in the Middle East.
It will also aim to consolidate its growing role in achieving food security in line with the goals of Saudi Vision 2030 and the state's support and empowerment of the private sector. -TradeArabia News Service
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