Almarai says strong Q1 2022 performance on improved trading conditions

Almarai Co. headquarters

Almarai Co. said improved trading conditions resulted in a “very strong” performance in Q1 2022.

The company expects positive momentum to continue at a lower rate in the coming quarters as it will enter normal business patterns in H2 2022 from a comparative perspective, according to the dairy producer’s financial statement.

Commenting on Q1 2022 results, Almarai said the key risk remains surging cost inflation for dairy and feed commodities which have not shown any signs of easing in 2022.

The company will continue to manage this risk through better hedging activities and by leveraging its stock cover where relevant.

Almarai’s net profit after Zakat and tax rose 9% to SAR 420.5 million in the first quarter of 2022 from SAR 385.9 million in the same period a year earlier, according to data compiled by Argaam.