January 22, 2013

Saudi's Almarai's 2012 Q4 net earnings up 29.2%

For the fourth quarter ended December 31, 2012, Saudi food company Almarai has reported a 29.2% increase in net profit to SAR369 million (US$98.2 million), compared to SAR285.5 million (US$76 million) for the same period in the earlier year.

The gross profit for the period totalled SAR869.9 million (US$232 million), an increase of 20.2%, compared to SAR723.8 million (US$192.7 million) for the corresponding period in 2011.

Almarai posted consolidated net profit of SAR1.4 billion (US$383.4 million) for the twelve months ended December 31, 2012, a 26.4% increase compared to SAR1.13 billion (US$303.9 million) for the earlier year.

The company noted that higher sales and profit growth for the fourth quarter can be attributed to strong performance from all products, especially poultry and bakery, as well as the continuation of IDJ consolidation in this quarter.

The profit growth in the quarter was negatively affected due to continued higher material costs and overhead growth due to expansion in new projects, but it was positively affected by capital gains realised on sale of assets.

The company is a vertically integrated dairy operator which diversified into various brands. It offers a dairy liquids, fresh yoghurts and desserts, processed and natural cheeses and juices. L'usine and 7DAYS brands offer bakery products, while Alyoum is its premium poultry brand which offers whole chickens and portion packs.