Almarai Q2 Net Profit Up 1.8 Pct Despite Raw Material Pressure

12 Jul 2011

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Considering the impact of cost increases, Almarai is satisfied with the overall performance in the second quarter with continued sales growth and increased market share across all key product categories.

7/12/2011 --- Saudi dairy giant Almarai Company has announced its interim consolidated financial results for the period ended 30 June 2011. For the second quarter ended 30 June 2011 Almarai generated a consolidated net profit amounting to SAR 349.3 million (US$93 million), an increase of 1.8% compared to the same period last year (SAR 343.1 million) and an increase of 48.5% compared to the first quarter 2011 (SAR 235.2 million).

The total gross profit for the second quarter ended 30 June 2011 amounted to SAR 767.2 million, an increase of 9.4% compared to the same period last year (SAR 701.1 million). The operating profit for the second quarter ended 30 June 2011 amounted to SAR 405.8 million, an increase of 4.7% compared to the same period last year (SAR 387.7 million).

The consolidated net profit for the first six months ended 30 June 2011 amounted to SAR 584.5 million, an increase of 1.3% compared to the same period last year (SAR 577.2 million). The earnings per share (EPS) for the six months ended 30 June 2011 was SAR 2.54 compared to SAR 2.51 for the prior year. Note that the EPS calculation for the second quarter 2010 has been restated to reflect the Bonus Issue of December 2010.

The total gross profit for the first six months ended 30 June 2011 amounted to SAR 1,401.4 million, an increase of 10.2% compared to the same period last year (SAR 1,271.2 million). The operating profit for the first six months ended 30 June 2011 amounted to SAR 697.2 million, an increase of 4.7% compared to the same period last year (SAR 665.8 million).

Turnover for the second quarter ended 30 June 2011 amounted to SAR 2,012.9 million, an increase of 15.8% compared to the same period last year (SAR 1,738.9 million). Turnover for the first six months ended 30 June 2011 amounted to SAR 3,756.4 million, an increase of 13.9% compared to the same period last year (SAR 3,298.4 million). Compared with the same period last year, the second quarter has been negatively impacted from continued commodity price inflation.

The increase in raw material costs is impacting the following key areas:
• Feedstuffs
• Packaging materials
• Dairy commodities
• Juice concentrates

Considering the impact of these cost increases, Almarai is satisfied with the overall performance in the second quarter with continued sales growth and increased market share across all key product categories.