Saudi dairy company Almarai reported a 4.19% increase in quarterly profits for the fourth quarter of 2023, reaching approximately SAR 370.72 million. This is compared to a net profit of around SAR 355.82 million in the same quarter of 2022.
However, on a quarterly basis, net profit decreased by 23.76% compared to a net profit of approximately SAR 486.26 million in the third quarter of 2023, according to the company's consolidated annual financial results.
The company attributed the year-on-year increase in net profit for the fourth quarter of 2024 to several factors, including a 5% increase in operating profits due to sales growth and stable costs of goods. Cost and expense management, including general and administrative expenses, also contributed to the stability of operating profits.
Almarai, a Saudi Arabian company, produces food and beverages equivalent to the weight of 11,000 passenger planes. The company partially benefited from the full acquisition of its operations in Egypt and Jordan during 2023.
Despite higher financing costs, Almarai achieved a 4% increase in net profit attributable to shareholders. The company's performance in its key markets, particularly in Saudi Arabia, led to a 5% annual revenue growth, driven by the poultry sector followed by the dairy sector.
However, overall group revenue growth was limited to 2% due to declining sales of animal feed in North America and decreased revenue from Egypt due to the devaluation of the Egyptian pound.
In 2023, Almarai's net profit increased by 18.34% to approximately SAR 2.05 billion compared to around SAR 1.76 billion in 2022.
