In its third-quarter results, Almarai Company of Saudi Arabia reported its satisfaction at an overall increase in sales of 2.5 percent to SAR3.61 billion (US$960.7 million) and gross profit of SAR1,56 billion (US$414.29 million), an increase of 7.7 percent from the same period last year.
Sales by its Dairy & Juice and Bakery divisions have increase by 1.4 percent and 17.4 percent, respectively. Its Poultry segment, however, suffered a 9.4 percent reduction in sales, blamed on increased competition from imported frozen products that led to surplus birds on the market, and to an increase in energy costs. These market challenges led to a loss of SAR71.9 million (US$19.12 million) for Almarai’s Poultry division, which is 46.6 percent more than for the corresponding quarter last year.
For the year so far, Almarai’s total sales reached SAR11.1 trillion (US$2.95 billion), which is 8.6 percent higher than 12 months ago, and gross profit is up by 10.8 percent at SAR4.37 billion (US$1.16 billion).
According to the company’s quarterly report, there has been a deceleration in growth for the majority of its product categories. Looking ahead, Almarai expects a continuation of favorable commodity prices and the benefits of its earlier measures to improve efficiency and control operating costs. These measures and the maintenance of its strategic direction of profitable growth will remain the company’s focus in the months ahead.
Recent business concerning Almarai
In recent days, Almarai has announced the resignation of a member of the board of directors, H.E. Eng. Abdullah Bin Mohammed Noor Rihaimi (a non-executive director, one of SAVOLA Group representatives in Almarai board of directors) for personal reasons. The Board consequently announced its intention to appoint Eng. Rayan Fayez, effective 5 October 2016. The decision will be presented to the next General Assembly meeting for approval.
According to the company’s web site, Almarai was founded in 1977 by its chairman, H.H. Prince Sultan bin Mohammed bin Saudi Al Kabeer, who recognized an opportunity to transform Saudi Arabia’s traditional dairy farming industry to meet the needs of Saudi Arabia’s rapidly expanding domestic market, and it has become the world’s largest vertically integrated dairy company. In addition to the Almarai brand of dairy products and juices, the company also manufactures and markets ALYOUM whole chickens and poultry products, L’usine and 7DAYS baked goods and Nuralac infant and child formulas.
Earlier this month, poultry breeding company, Aviagen, announced the delivery of 87,000 Ross parent chicks to Almarai.
