Saudi F&B company Almarai Q4 profit up 4% to $100m

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Saudi Arabian food and beverage company Almarai said its net profit for the final quarter of 2023 rose four percent year on year to SAR370.72 million ($98.84 million), driven by a positive performance in its core GCC markets.

Saudi Arabia contributed the most to the quarterly revenue growth, driven mainly by the poultry and dairy segments.

However, the group revenue growth fell two percent year on year due to lower sales of commodities in North America and the devaluation of the Egyptian pound.

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Despite this, Almarai’s profit dropped 24 percent quarter on quarter from SAR486.26 million in the third quarter of 2023.

The company reported a net profit of SAR2.05 billion in 2023, an increase of 16 percent year on year, amid stable market environment and strong trading performance.

Revenue grew five percent year on year to SAR19.57 billion last year, supported by cost control and stable commodity costs. Additionally, the expansion of the poultry segment, the launch of several new products and increased direct marketing communication with consumers led to the growth.

Almarai rolled out multiple new products last year with plans to enter the seafood and frozen bakery business.

The company expects its core business to gain market share in selected product categories and geographies this year as it explores additional opportunities to grow inorganically and deploy capital in line with its five-year investment strategy.