The Clap
Almarai (2280) recorded a strong performance in the first quarter of the current year, with its net profit rising to around 692 million riyals, compared to approximately 635 million riyals during the same period in 2023.
Revenue
The increase in this quarter’s profits was due to an 8% growth in the company’s revenue on a yearly basis, reaching approximately 5.4 billion riyals.
This is attributed to cost control, product mix diversification, and stable commodity costs.
So What
Almarai, a regional leader in dairy production, benefited from strong sales volume growth, as well as positive contributions from the dairy and poultry sectors.
It also noted overcoming the negative impact of the depreciation of the Egyptian pound.
Some Context
The company’s key operating sectors contributed to its profit growth as follows:
– Profits from dairy and juices increased due to improved sales in key markets in the Gulf countries.
– The inclusion of 10 days of the blessed month of Ramadan in the first-quarter data, especially in the dairy sector.
– Bakery profits increased due to production efficiency and seasonal changes in consumption patterns.
– Poultry’s net profit grew due to continued production efficiency enhancements and volume savings.
Now What
Almarai clarified that dairy and feed prices remain stable, despite the negative effects of international maritime shipping lines.
It added that it will continue to manage these risks by developing its hedging activities and utilizing its reserves appropriately.
