Saudi Arabia’s largest dairy company, Almarai, has reported a significant 5% increase in third-quarter net profit, attributing the growth to higher sales in its core markets, efficient cost controls, and stable commodity costs. The company’s net profit for the quarter, after zakat and tax, reached 486.26 million Saudi riyals ($129.67 million), compared to the same period last year. This growth was supported by a 0.6% increase in revenue, totaling 4.79 billion riyals, driven primarily by elevated sales in the bakery and poultry divisions. Almarai noted that robust operational performance enabled them to offset higher funding costs and benefit from zakat provision. The company’s dairy and juice business experienced a decline in earnings due to factors such as the devaluation of the Egyptian pound and increased marketing investments.
In the first nine months of 2023, Almarai’s net profit soared by 19.5% to 1.67 billion riyals, while revenue for the same period increased by 5.6% to 14.7 billion riyals. The company attributed its impressive year-to-date performance to capacity expansion, market share gains, and rigorous control over overheads. Additionally, the full consolidation of Almarai’s Egypt and Jordan operations, previously a joint venture with PepsiCo, contributed to the company’s growth. Almarai’s results reflect the ongoing strength of Saudi Arabia’s economy, with the non-oil sector driving economic growth in the country. Business activity in Saudi Arabia’s non-oil private sector remained robust in September, reflecting positive economic indicators in the region.