Almarai: announced Q1-2023 financial results

Riyadh / SA. (ac) Almarai Company is pleased to announce its Condensed Consolidated Interim Financial Results for the first quarter (Q1) ended on 31 March 2022 (three months) as follows. Financial highlights:

  • Dairy + Juice Category: The category profit increased by 8 percent (revenue up by 6 percent) as higher year-on-year sales growth was offset with cost inflation, mainly in dairy and feed commodities.
  • Bakery Category: Net profit for the quarter grew by 29 percent (revenue up by 9 percent) due to positive volume growth and fixed cost leverage.
  • Poultry Category: Positive volume growth due to additional capacity available resulted in 25 percent revenue growth and 38 percent normalized net income growth.
  • Other Category: The category reported a loss of SAR 16 M driven by stable overseas farming performance compared to a loss of SAR 15 M in the same period last year.

General Comments

Saudi Arabia’s Almarai Company is pleased to report good performance for the first quarter of 2023 where positive revenue growth was observed in all product categories and in all geographies in local currency terms. We expect this positive momentum to continue on the top line driven by capacity expansion in poultry and stable macroeconomic momentum. The key risks related to dairy and feed commodities inflation are continuing to show signs of stability for the last couple of quarters. Almarai will continue to manage this risk by better hedging activities and by leveraging its stock cover, where relevant. Further details are available in the Company’s news release below (299 KB):