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Dairy giant Almarai’s net income rose 10% y-o-y to SAR 1.3 bn in 1H 2024 on the back of revenues, improved expenses management, and stabilized commodity costs, according to its earnings release (pdf). Revenues rose 8% y-o-y during the period to SAR 10.6 bn due to strong performance in core GCC markets led by its dairy and poultry segments.
A strong performance across all segments: Almarai said its dairy and juice segment saw a higher bottomline y-o-y during the first six months of the year due to an “improved sales mix” and disciplined expenditure control. Its bakery category was also up during the period due to a higher efficiency in production and seasonal consumption adjustments with its poultry category also reporting growth due to production optimization.
A look at 2Q: Almarai’s net income rose 11% y-o-y to SAR 619.7 mn in 2Q 2024, while its revenues grew 8% y-o-y during the period to SAR 5.2 bn. Compared to 1Q 2024, its bottom line was down 10% and its top line fell by 6%.
What they said: “Almarai is pleased to report strong performance for the second quarter of 2024 with positive revenue growth in all product categories and in all geographies, supported by higher volume growth. We expect this positive momentum to continue at the top line, driven by stable macroeconomic momentum and improved business performance,” according to the release.
REMEMBER- Almarai is looking to spend more to make more: It 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. The plans saw it ink several agreements during the Middle East Poultry Expo in May, including two with Swiss company Bühler to establish feed mills, one with Belgium’s Petersime to set up hatcheries, and another agreement with Germany’s Big Deutschmann to work together on supplying feed equipment to serve the sector.
