The net profits of “Almarai” (2280) rose 11% YoY during the second quarter of this year, reaching some SAR 619.7 million.
Dairy and Poultry
The company attributed the increase in its quarterly profits to an 8% growth in its revenues on the back of “strong growth” in its sales volume.
This was due to positive contributions from all its sectors, led by the dairy and poultry arms.
So What
Almarai’s share saw an almost 2% uptick following the announcement of its positive performance results, reaching SAR 57.
Some Context
The contributions from the main operating sectors that led to the increase in the company’s net profits were as follows:
- The profits of the dairy and juice sector increased compared to the previous year, due to higher sales in main markets in Gulf countries.
This was especially true for dairy products, in addition to positive cost control.
- The bakery sector’s profits increased due to production efficiency and seasonal changes in consumption patterns.
- The poultry sector’s profits grew thanks to revenue growth, continued production efficiency improvements, and enhanced economies of scale.
