06/04/2026 05:04 AST
Almarai reported a net profit of SR732.2 million ($195 million) for the first quarter of 2026, broadly unchanged from SR731.2 million in the same period last year, as higher revenues and cost discipline supported earnings.
Profit rose 57.5 percent quarter on quarter on higher volumes and improved mix, while revenue climbed to SR6.16 billion, up 6.8 percent year on year and 12.9 percent sequentially, the company said in a Tadawul filing.
The results come amid steady consumer demand across Saudi Arabia's food sector, with Ramadan typically boosting volumes, while companies continue to navigate cost pressures and competitive pricing across key categories.
In the bourse filing, Almarai stated: "Revenues increased by 7 percent during the current quarter due to improved Ramadan performance and strong sales volume growth in most markets, product categories, and sales channels, led by dairy and poultry."
The company reported gross profit of SR1.87 billion, up 5.5 percent year on year, while operating profit rose 0.1 percent to SR875.1 million.
On a quarterly basis, operating profit increased 42.2 percent, reflecting higher sales and improved efficiencies.
Net profit was broadly stable compared with the same quarter last year, driven by revenue growth, disciplined cost control and an improved product mix.
The company outlined mixed performance across segments. The dairy and juice category's net profit increased during the quarter compared with last year, supported by improved sales in most markets and stronger Ramadan performance, especially for fresh dairy.
The bakery category's net profit also increased, while the protein category's net profit declined compared with last year due to poultry market supply conditions.
Sequentially, seasonal demand remained a key driver. The 13 percent increase in revenue during the current quarter compared to the previous one is due to higher sales volumes and improved revenue mix.
Despite the stable earnings performance, margins came under pressure during the quarter, with gross, operating and net profit margins all declining compared with a year earlier.
Total comprehensive income attributable to shareholders fell 33 percent year on year to SR601.9 million, while total equity rose to SR21.1 billion. Earnings per share remained unchanged at SR0.74.
Looking ahead, the company said it is monitoring regional developments and will continue to manage supply chain and operational risks while maintaining adequate inventory levels.
Arab News
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