Almarai’s Q2 Profits Rise 11% to SAR 619.7 Million

Almarai Company reported a net profit of SAR 619.7 million for the second quarter of 2024, up 11.2% from SAR 557 million in the same quarter last year.

The company announced its estimated financial results for the period ending June 30, 2024.

Operating profit for Q2 reached SAR 793 million, a 10.3% increase from SAR 718.5 million in the same quarter the previous year.

Earnings per share for the current period were SAR 1.33, compared to SAR 1.21 in the same period last year.

Revenues increased by 8% due to strong volume growth, mainly attributed to the positive contribution from all product categories, led by the dairy and poultry categories

The 11% growth in net profit is driven by revenue growth of 8%, disciplined cost control, favorable product mix and stabilized commodity costs.

Contribution of various Business Categories towards the increase in the Consolidated Profit Attributable to Shareholders of 11% is as follows:

• Dairy & Juice Category: Net profit increased compared to last year due to improved sales in core GCC markets, especially for dairy categories, and tight cost management.
• Bakery Category: Bakery category net profit is higher than last year due to production efficiencies and seasonal adjustments in consumption patterns.
• Poultry Category: Poultry category net profit growth versus last year is positive due to higher revenue, continued production optimization and improved economies of scale.

The decrease of 6% in Revenue for the second quarter of 2024 (SAR 5,155 million), as compared to the first quarter of 2024 (5,459 SAR million) is due to seasonal consumption patterns.

The decrease of 10% in the Consolidated Profit Attributable to the Company’s Shareholders for the second quarter of 2024 (SAR 620 million), as compared to the first quarter of 2024 (692 SAR million) is due to reduction of revenue in the corresponding quarter due to seasonal consumption patterns.

The strong performance in core GCC markets resulted in a growth of 8% for the group, led by the dairy and poultry categories.

The 10% increase in Consolidated Profits Attributable to the Company’s Shareholders in the current period as compared to last year is due to higher revenue growth, disciplined cost control, favorable product mix and stabilized commodity costs.

Contribution of various Business Categories towards the increase in the Consolidated Profit Attributable to Shareholders of 10% is as follows:

• Dairy & Juice Category: The category profit is higher than last year due to improved sales mix across the board. In addition, tighter cost controls assisted in maintaining the growth in the bottom line.
• Bakery Category: Bakery category net profit was higher than last year due to production efficiencies and seasonal adjustments in consumption patterns.
• Poultry Category: Poultry category net profit growth versus last year was positive due to continued production optimization, and improved economies of scale.