Almarai’s net profit drops 16% to SAR 867.9 mln in H1 2021

11/07/2021 Argaam Exclusive

Saudi dairy giant, Almarai, reported a net profit after Zakat and tax of SAR 867.9 million for the first half of 2021, a fall of 16% from SAR 1.0269 billion in the same period last year.  



Financials (M)

Item 6m 2020 6m 2021 Change‬
Revenues 7,674.28 7,650.58 (0.3 %)
Gross Income 2,788.38 2,590.84 (7.1 %)
Operating Income 1,303.65 1,155.12 (11.4 %)
Net Income 1,026.94 867.93 (15.5 %)
Average Shares 1,000.00 1,000.00 -
EPS (Riyals) 1.03 0.87 (15.5 %)


Current Quarter Comparison (M)

Compared With The
Item Q2 2020 Q2 2021 Change‬
Revenues 4,081.84 4,005.57 (1.9 %)
Gross Income 1,535.19 1,355.74 (11.7 %)
Operating Income 790.40 621.55 (21.4 %)
Net Income 643.93 481.98 (25.2 %)
Average Shares 1,000.00 1,000.00 -
EPS (Riyals) 0.64 0.48 (25.2 %)

The company cited that it faced a challenging year, due to the base year effect of COVID-19 and VAT rate change-related purchases last year. Accordingly, revenues were at the same level as last year, but with an adverse mix. The revenue drop was prominent for long date products of foods, poultry and bakery, offset by other sales and dairy products. The same adverse issues were observed on the channel mix, where the drop in more profitable retail channel was offset by sales in hotel, restaurant and non-branded sales including alfalfa sales. 

 

Gross profit decreased by 7.1% year-on-year (YoY), while other expenses increased by SAR 19.5 million YoY. This came despite a decrease in selling and distribution, as well as general and administrative expenses. 

In Q2 2021, the company reported a net profit after Zakat and tax of SAR 482 million, a decline of 25% from SAR 643.9 million in the same period last year.  

 

On a sequential basis, Q2 2021 net profit increased 24.9% due to seasonality of sales.

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