SAUDI ARABIA – One of the Middle East’s largest dairy companies, Almarai has reported a 7% rise in the second quarter net profit, boosted by higher sales and lower costs.

According to a statement from the dairy giant, the company’s net profit, after zakat and tax for the three months ending June 30, rose to US$148.45 million, from the same period last year while revenue during the period rose nearly 4% to 4.79 billion.

“Global commodity cost continued to be flat in the current quarter, although commodities remain at higher levels than in earlier times,” Almarai said in the statement.

“Almarai will continue to manage these risks through better hedging activities and optimizing stock utilization.”

During the previous quarter, the company posted a decline in earnings in its dairy and juice business as a result of the Ramadan period.

However, net profit from the bakery and poultry segments grew due to higher sales and additional capacity, Almarai added.

The company’s net profit in the first six months of 2023 rose 27 per cent to US$317.2m from the same period a year earlier.

Meanwhile, Almarai’s first-half revenue increased by 8 per cent US$2.6 billion.

“The main risks are still the increase in inflation in the cost prices of feed commodities, and production inputs although most of them have come out of the high levels in the past months,” the company said.

In the meantime, the company has raised US$750 million from the sale of USD-denominated trust certificates under its US$2 billion Trust Certificate Issuance Programme.

In a regulatory filing on the Saudi Tadawul stock exchange, the company said the 10-year sukuk was priced at 5.233% per annum.

The 3,750 certificates sold have a par value of US$200,000 and will be listed on the Global Exchange Market of the Irish Stock Exchange plc trading as Euronext Dublin.

Almarai, being one of the dairy giants in Saudi Arabia, not only provides fresh and healthy products to its consumers but also works with them hand in hand to support local communities in order to achieve a real positive impact through its corporate social responsibility program.

According to the CEO, Abdullah Al-Badr, Almarai’s strategic plans are based on growth in the sectors in which the business operates, opening new sectors, or opening new markets for its products.

“Almarai has already expanded in the poultry sector in the Kingdom with an investment that exceeds 6 billion riyals. The company has also entered into new sectors such as the red meat sector and the seafood sector. export, acquisitions, or any other suitable methods for pasture,” Al-Badr added.

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