Almarai’s profit margins reached their highest level in four years to hit 41.1 percent in Q3-2015, an increase supported by strong demand for the company’s products during Ramadan and the summer months, research compiled by Argaam showed.
The Gulf's largest dairy company saw an improvement in profit margins for the fourth consecutive quarter, following a four-year decline caused by expansions.
Its poultry sales were the main driver behind growth, growing 15 percent year-on-year (YOY) to SAR 315 million in Q3, and 28 percent during the first nine months of 2015.
Total revenue rose eight percent YOY to SAR 3.52 billion in the third quarter.
Gross income grew 10 percent year-on-year to SAR 1.45 billion between July and September, while operating expenses jumped 16 percent in the same period.
The company’s Q3 net income rose 10 percent to SAR 595.1 million when compared to Q3-2014, as it incurred SAR 19.5 million in losses from sale of assets. A profit of SAR 29.6 million was also generated from the sale of property and equipment during the period.
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Almara’s Q3-15 Results (SAR mln) |
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Difference |
September 2015 |
September 2014 |
Item |
|
+8% |
3,523.6 |
3,269.4 |
Revenue |
|
+10% |
1,446.5 |
1,310.7 |
Gross income |
|
+2.8% |
41.1% |
38.3% |
Gross income margin |
|
+16% |
(773.8) |
(666.0) |
Operating expenses |
|
+4% |
672.7 |
644.7 |
Operating income |
|
+10% |
595.1 |
539.4 |
Net profit |
Almarai’s stock has gained 13 percent so far this year, outperforming Tadawul’s agriculture sector index, which has lost 10 percent during the period.
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Almarai’s Stock Performance |
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|
87.00 |
Stock price (SAR) – October 11 closing |
|
|
28.1 |
P/E for last 12 months (x) |
|
|
19.49 |
Book value (SAR/share) |
|
|
4.3 |
P/B (x) |
|
|
1.15% |
Dividend yield |
|
|
7.4% |
Return on average assets |
|
|
16.6% |
Return on average equity (ROAE) |
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