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Almarai — the Middle East’s largest dairy producer — reported a 4% y-o-y rise in net income to SAR 371 mn in 4Q 2023, according to its earnings release (pdf). Its revenues grew 2% y-o-y to c. SAR 4.9 bn in the fourth quarter of the year. On a full-year basis, Almarai’s bottom line rose 16% y-oy to SAR 2 bn, while revenues were up 5% y-o-y to c. SAR 19.6 bn.
Main drivers: The rise in net income in the fourth quarter of the year came on the back of higher operating income and the full acquisition of the Egypt and Jordan business earlier in 2023, which helped offset higher operating costs. The company’s dairy and juice, bakery, and poultry segments also contributed to the increase. The growth in revenues was attributed to “positive performance” in core GCC countries led by the local market. However, lower contributions from its Egypt business due to the EGP devaluation and reduced sales of commodities in North America drove the group’s revenue growth down 2% during the period.
REMEMBER- Almarai bought in February last year PepsiCo’s entire 48% stake in the parent company of juice and dairy producer Beyti for SAR 255 mn, giving it 100% ownership of International Dairy and Juice Limited, its former joint venture with PepsiCo in Egypt and Jordan.
What they said: “Going forward, Almarai expects its core business to continue to gain market share in selected product categories and geographies…grow inorganically and deploy capital in line with its 5 years investment strategy,” it said.
