July 15, 2011 

Almarai's Q2 net profit up 1.8%

For the second quarter ended June 30, Saudi dairy giant Almarai generated a consolidated net profit amounting to SAR349.3 million (US$93 million), an increase of 1.8% compared to the same period last year and an increase of 48.5% compared to the first quarter 2011.

The total gross profit for the second quarter ended June 30 amounted to SAR767.2 million (US$205 million), an increase of 9.4% compared to the same period last year. The operating profit for the second quarter ended June 30 amounted to SAR405.8 million (US$108 million), an increase of 4.7% compared to the same period last year.

The consolidated net profit for the first six months ended June 30 amounted to SAR584.5 million (US$156 million), an increase of 1.3% compared to the same period last year. The earnings per share (EPS) for the six months ended June 30 was SAR2.54 (US$0.68) compared to SAR2.51 (US$0.67) for the prior year. Note that the EPS calculation for the second quarter 2010 has been restated to reflect the Bonus Issue of December 2010.

The increase in raw material costs is impacting the following key areas: feedstuffs, packaging materials, dairy commodities, and juice concentrates.

Considering the impact of these cost increases, Almarai is satisfied with the overall performance in the second quarter with continued sales growth and increased market share across all key product categories.