Almarai's Q1 2021 results meet expectations: Itqan Cap

Almarai office

Saudi dairy producer Almarai Co.'s Q1 2021 results were in-line with forecasts, as the repercussions of the COVID-19 pandemic unfolded, Itqan Capital said in a recent report.

"Going forward, we expect lower subsidies and demand due to expat exodus to continue to pressurize the company’s profitability in the short-term," the report said.

However, margins are expected to normalize in 2021 due to the company’s cost efficiencies, coupled with the economy pick-up, as vaccine rollouts increased across the region.

Itqan Capital recommended 'Neutral' on the stock, maintaining the target price at SAR 54.10.