Almarai Reports Strong Growth in Q4

Operating profit for the fourth quarter ended 31 December 2010 amounted to SAR 319.2 million compared to the same period last year (SAR 281.4 million), an increase of 13.4%.

1/18/2011 --- Saudi Arabia's Almarai, the Gulf's biggest dairy firm by market value, has reported that fourth-quarter net profit rose 14 percent to 283.8 million Saudi riyals ($75.68 million).

For the fourth quarter ended 31 December 2010 Almarai generated a consolidated net income amounting to SAR 283.8 million, an increase of 14.0%, compared to the same period last year (SAR 248.8 million) and a decrease of (33.2%) compared to the third quarter 2010 (SAR 424.5 million).

Gross profit for the fourth quarter ended 31 December 2010 amounted to SAR 668.3 million, an increase of 17.5%, compared to the same period last year (SAR 568.6 million). Operating profit for the fourth quarter ended 31 December 2010 amounted to SAR 319.2 million compared to the same period last year (SAR 281.4 million), an increase of 13.4%.

The consolidated net income for the twelve months ended 31 December 2010 amounted SAR 1,285.4 million, an increase of 17.2% compared to the same period last year (SAR 1,096.7 million).

Earnings per share (EPS) for the twelve months ended 31 December 2010 was SAR 5.59 compared to SAR 4.97 for the prior year (The 2009 earnings per share has been retrospectively adjusted for the 2010 bonus share issue).

Gross profit for the twelve months ended 31 December 2010 amounted to SAR 2,735.9 million, an increase of 15.6% compared to the same period last year (SAR 2,365.8 million). Operating profit for the twelve months ended 31 December 2010 amounted to SAR 1,459.5
million, an increase of 14.1% compared to the same period last year (SAR 1,278.9 million).

Sales for the fourth quarter ended 31 December 2010 amounted to SAR 1,798.8 million, an increase of 16.2% compared to the same period last year. (SAR 1,548.2 million). Sales for the twelve months ended 31 December 2010 amounted to SAR 6,930.9 million, an increase of 18.1% compared to the same period last year. (SAR 5,868.8 million).

These exceptional results are attributed to increased sales, product diversification and continuous improvements in quality and service. During the year Almarai imported 80% of the fodder necessary to produce all dairy products exported outside of KSA. This will increase to 100% of the equivalent fodder requirement for 2011.

The second half of 2010 saw dairy commodities, Juice ingredients, packaging and feed costs increase significantly. The company’s procurement strategy protected margins during 2010.