Almarai 2023 profit up 16% to SAR 2.04B; Q4 at SAR 370.7M

Almarai Co. reported a rise of 16% year-on-year (YoY) in net profit to SAR 2.04 billion for 2023, compared to SAR 1.75 billion in 2022.

The profit increase was driven by a 5% YoY increase in revenue, supported by the strong performance in core GCC markets. This resulted in a growth of 8% YoY for the group, led by the poultry and dairy segments. However, the net revenue growth was reduced to 5% YoY on the group level due to the devaluation of the Egyptian pound and lower sales of fodder from the US operations.  

Meanwhile, operating profit grew 18% YoY due to cost control and stable commodity costs. The results improved due to the expansion of the poultry category, the launch of several new products and the effect of the increased direct marketing communication with consumers. 

Shareholder net profit for the current year was higher than last year due to positive operating profit growth and the acquisition of the 100% share of the group's operations in Egypt and Jordan, despite higher funding costs due to higher interest rates. 

The dairy & juice segment’s net profit increased YoY due to improved sales in the Gulf countries, and strict cost controls. The strong results were achieved while managing the impact of the Egyptian pound devaluation in this business category. 

The bakery segment saw higher net profit driven by both volume and sales growth. The top-line growth was driven by multiple factors, including improved bread sales, growth in single-serve products, product innovation, and economies of scale.  

Additionally, the poultry segment reported an increase in net profit due to sales growth aided by additional production capacity and improved operational efficiency. 

The fourth-quarter net profit leapt 4.2% to SAR 370.72 million from SAR 355.82 million in the prior-year period, backed by a 2% YoY rise in revenue despite higher finance costs.  

Operating profit also grew by 5% YoY on better sales. The company also capitalized on the synergies driven by the full acquisition of the Egypt and Jordan business earlier in the year. 

Compared to the previous quarter, net profit dropped by 23.8% from SAR 486.26 million in Q4 2022, due to seasonal adjustment in consumption patterns.  

Total shareholders’ equity, excluding minority interest, increased to SAR 17.79 billion as of Dec. 31, 2023, from SAR 16.67 billion a year earlier.

View more financial results