Almunajem Foods profits post a 383% leap during Q4, to SAR 81.6

Almunajem Foods Co.’s net profit after zakat and tax surged to SAR 81.6 million in the fourth quarter, marking a remarkable 383% increase compared to the SAR 16.9 million recorded in the corresponding quarter of the previous year. This substantial growth was unveiled following Thursday’s announcement of the interim annual financial results for the period ending on December 31, 2023 (12 months).

In the fourth quarter, the operating profit soared to SAR 86 million, demonstrating a substantial 294% rise from the SAR 22 million reported in the same quarter of the preceding year.

However, over the 12-month period, the net profit after zakat and tax totaled SAR 282 million, reflecting a slight decrease of 3% from the SAR 291 million reported in the corresponding period last year.

Earnings per share for the current period amounted to SAR 4.7, a modest decrease from the SAR 4.85 reported in the same period the previous year.

Revenue for the 4th Quarter of 2023 increased by 10.9%, reaching SAR 829.2 million compared to the same quarter of last year. This is mainly driven by the increase in sales volumes for almost all categories by 10.1%

Increase in net profit for the 4th quarter of 2023 by 383% compared to the same quarter of the last year, reaching SAR 81.6 million due to the following main reasons:

– Increase in gross profit by 72% during the 4th quarter of 2023 as a result of the improvement in gross profit margins of some product categories, such as Red & White Meat and Dairy products.

– Operating expenses as % of revenue also dropped to 8.4% in the 4th quarter of 2023 compared to 9% in the same quarter of last year.

Revenue for the 4th Quarter of 2023 increased by 2.3%, reaching SAR 829.2 million compared to the previous quarter of the same year. This is partly driven by an increase in sales volumes in some categories, such as Fruits & Vegetables, Dairy and Olives & Oil and partly by improved trade conditions in certain categories.

Increase in net profit for the 4th quarter of 2023 compared to the previous quarter of the current year by 33.5%, reaching to SAR 81.6 million due to the following main reasons:

– increase in gross profit by 16 %, reaching SAR 156.5 million, as a result of the increase of margins of red & white meat and dairy categories, compared with the previous quarter

The increase in revenues by 11.3% for the current year, 2023 compared with the last year, 2022 is due to the following:

– Growth in sales volumes by 16.4% in all categories.

Net profit during the current year decreased by 2.8% to reach SAR 282.2 compared to the last year due to the following main factors:

– Lower gross profit margins for some categories, such as Fruits & Vegetables and Dairy products.

Despite of:

– Increase in revenue by 11.3%

– Operating expenses as % of revenue dropped from 9.4% in 2022 to 8.7% in 2023

These estimated financial results for the year ended 31st December 2023 are prepared by the management of the Company and were not reviewed by the external auditors

The company stated that some comparative figures for the previous periods have been reclassified in line with the current period’s classification.