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Dairy giant Almarai’s net income rose by 9% y-o-y to SAR 692.2 mn in 1Q 2024 on the back of improved expenses management and stabilized commodity costs, it said in an earnings release (pdf). Revenues rose 8% to SAR 5.5 bn thanks to volume growth led by its dairy and poultry segments.
All thanks to Ramadan: Almarai said its dairy and juice segment saw improved sales in its core GCC markets during the quarter ahead of Ramadan. Its bakery category also grew during the period on the back of a higher efficiency in production and seasonal consumption adjustments.
Almarai’s net income grew 87% q-o-q from SAR 371 mn in 4Q 2023. Its revenues were up 11% q-o-q from SAR 4.9 bn in the final quarter of 2023.
The robust performance during 1Q helped the dairy producer “absorb the adverse impact of the EGP devaluation,” it said, adding that dairy and feed commodities remain anchored despite the Red Sea shipping crisis. Almarai owns and operates the Beyti brand in Egypt.
What they said: “We expect this positive momentum to continue at the topline driven by stable macroeconomic momentum and improved tourism in general,” Almarai said.
REMEMBER- Almarai wants even more: Almarai said in March that it plans to spend SAR 18 bn over the next five years as part of a strategic plan aimed at maximizing sales. It plans to ramp up investment in supply chain, development, sustainability, operational efficiency, and technology.
