Almarai’s Q1 2023 profit jumps 51% to SAR 635 mln

09/04/2023 Argaam Exclusive

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Share Price

55.20
0.10 0.18 %

Almarai Co. (ALMARAI)

Almarai Co. reported a profit leap of 51% year-on-year (YoY) to SAR 635 million for the first quarter of 2023, from SAR 420.5 million.



Current Quarter Comparison (M)

Compared With The
Item Q1 2022 Q1 2023 Change‬
Revenues 4,503.46 5,066.56 12.5 %
Gross Income 1,331.92 1,617.85 21.5 %
Operating Income 569.54 815.86 43.2 %
Net Income 420.46 635.06 51.0 %
Average Shares 1,000.00 1,000.00 -
EPS (Riyals) 0.42 0.64 51.0 %

The giant dairy and juice producer attributed the rise to the one-off gains made during the first 10 days of Ramadan and the subsidy related to food security measures taken by Almarai. These one-off benefits amounted to SAR 149 million, representing 35% growth in net profit YoY.

 

Almarai normalized profit grew by 16% YoY as revenue (+9%) recorded growth in all countries, products, and channels at the local currency level. Egypt revenue in Saudi Riyals terms declined YoY on the pound devaluation. 

 

Operating profit jumped 19% YoY. The current quarter witnessed stable global commodities cost at a higher level relative to historical costs (mainly corn, soya and alfalfa). However, higher inventory cover continued to impact cost of goods sold expenses.  

 

Better cost control, mainly for sales and marketing as well as general and administrative expenses, greatly buoyed the growth in operating profit.

 

Compared to Q4 2022, net profit leapfrogged 78.5% from SAR 355.82 million on seasonal adjustment in consumption patterns, driven by Ramadan advancement by 10 days in Q1 and the one-off gains made in the current quarter. 

 

Total shareholders’ equity, after minority interest, increased to SAR 17.23 billion as of March 31, 2023, from SAR 16.32 billion a year earlier.



Financial results (Million)

Period Revenues Change Gross Income Change Net Income Change EPS(Riyal)
Q1 2014 2,718.92 12.8 % 918.95 11.0 % 273.58 7.2 % 0.27
Q2 2014 3,286.52 14.4 % 1,149.16 11.1 % 433.29 8.8 % 0.43
Q3 2014 3,269.37 11.7 % 1,390.72 25.9 % 539.44 13.4 % 0.54
Q4 2014 3,330.76 10.7 % 1,133.79 13.9 % 428.03 14.7 % 0.43
Q1 2015 3,037.31 11.7 % 1,110.34 20.8 % 306.48 12.0 % 0.31
Q2 2015 3,649.52 11.0 % 1,388.04 20.8 % 530.42 22.4 % 0.53
Q3 2015 3,523.58 7.8 % 1,446.52 4.0 % 595.12 10.3 % 0.60
Q4 2015 3,584.20 7.6 % 1,338.37 18.0 % 483.68 13.0 % 0.48
Q1 2016 3,373.79 11.1 % 1,127.55 1.5 % 288.66 (5.8 %) 0.29
Q2 2016 3,925.89 7.6 % 1,520.89 9.6 % 658.38 24.1 % 0.66
Q3 2016 3,530.34 0.2 % 1,485.41 2.7 % 664.26 11.6 % 0.66
Q4 2016 3,508.56 (2.1 %) 1,388.64 3.8 % 536.49 10.9 % 0.54
Q1 2017 3,383.53 0.3 % 1,177.43 4.4 % 328.27 13.7 % 0.33
Q2 2017 3,760.36 (4.2 %) 1,554.93 2.2 % 674.11 2.4 % 0.67
Q3 2017 3,372.92 (4.5 %) 1,516.00 2.1 % 667.01 0.4 % 0.67
Q4 2017 3,418.73 (2.6 %) 1,335.27 (3.8 %) 512.89 (4.4 %) 0.51
Q1 2018 3,232.21 (4.5 %) 1,254.43 6.5 % 344.87 5.1 % 0.34
Q2 2018 3,672.33 (2.3 %) 1,448.45 (6.8 %) 661.39 (1.9 %) 0.66
Q3 2018 3,317.36 (1.6 %) 1,399.20 (7.7 %) 634.96 (4.8 %) 0.63
Q4 2018 3,381.18 (1.1 %) 1,262.94 (5.4 %) 370.77 (27.7 %) 0.37
Q1 2019 3,308.89 2.4 % 1,163.91 (7.2 %) 336.03 (2.6 %) 0.34
Q2 2019 3,767.42 2.6 % 1,466.22 1.2 % 582.53 (11.9 %) 0.58
Q3 2019 3,573.26 7.7 % 1,443.77 3.2 % 581.25 (8.5 %) 0.58
Q4 2019 3,703.94 9.5 % 1,293.51 2.4 % 311.95 (15.9 %) 0.31
Q1 2020 3,592.44 8.6 % 1,253.19 7.7 % 383.01 14.0 % 0.38
Q2 2020 4,081.84 8.3 % 1,535.19 4.7 % 643.93 10.5 % 0.64
Q3 2020 3,863.08 8.1 % 1,514.70 4.9 % 621.52 6.9 % 0.62
Q4 2020 3,819.59 3.1 % 1,232.43 (4.7 %) 335.90 7.7 % 0.34
Q1 2021 3,645.01 1.5 % 1,235.11 (1.4 %) 385.95 0.8 % 0.39
Q2 2021 4,005.57 (1.9 %) 1,355.74 (11.7 %) 481.98 (25.2 %) 0.48
Q3 2021 3,941.73 2.0 % 1,275.71 (15.8 %) 409.09 (34.2 %) 0.41
Q4 2021 4,257.41 11.5 % 1,192.71 (3.2 %) 286.53 (14.7 %) 0.29
Q1 2022 4,503.46 23.6 % 1,331.92 7.8 % 420.46 8.9 % 0.42
Q2 2022 4,610.45 15.1 % 1,469.61 8.4 % 520.36 8.0 % 0.52
Q3 2022 4,769.12 21.0 % 1,488.72 16.7 % 463.17 13.2 % 0.46
Q4 2022 4,839.23 13.7 % 1,333.99 11.8 % 355.82 24.2 % 0.36
Q1 2023 5,066.56 12.5 % 1,617.85 21.5 % 635.06 51.0 % 0.64

Profitability

Period Gross Margin OIBDA Margin Net Margin Before Unusual Items
Q1 2014 35.17 % 27.75 % 13.01 %
Q2 2014 34.91 % 27.35 % 12.86 %
Q3 2014 36.26 % 27.32 % 13.02 %
Q4 2014 36.43 % 27.38 % 13.12 %
Q1 2015 37.02 % 27.31 % 13.21 %
Q2 2015 37.80 % 27.58 % 14.18 %
Q3 2015 37.51 % 27.73 % 14.32 %
Q4 2015 38.30 % 27.91 % 14.61 %
Q1 2016 37.51 % 27.63 % 14.13 %
Q2 2016 37.71 % 28.38 % 14.20 %
Q3 2016 37.96 % 29.09 % 14.50 %
Q4 2016 38.51 % 30.87 % 15.00 %
Q1 2017 38.84 % 31.68 % 15.27 %
Q2 2017 39.53 % 32.67 % 15.56 %
Q3 2017 40.19 % 34.21 % 15.93 %
Q4 2017 40.07 % 34.18 % 15.66 %
Q1 2018 41.07 % 35.75 % 15.95 %
Q2 2018 40.55 % 36.32 % 15.96 %
Q3 2018 39.86 % 36.36 % 15.79 %
Q4 2018 39.44 % 36.05 % 15.53 %
Q1 2019 38.56 % 35.36 % 15.38 %
Q2 2019 38.42 % 34.75 % 14.70 %
Q3 2019 38.04 % 33.87 % 14.05 %
Q4 2019 37.39 % 33.18 % 12.62 %
Q1 2020 37.28 % 32.63 % 12.70 %
Q2 2020 36.96 % 32.11 % 12.84 %
Q3 2020 36.72 % 31.84 % 12.86 %
Q4 2020 36.05 % 30.84 % 12.79 %
Q1 2021 35.81 % 31.08 % 12.76 %
Q2 2021 34.81 % 30.08 % 11.77 %
Q3 2021 33.08 % 28.17 % 10.33 %
Q4 2021 31.92 % 26.91 % 9.86 %
Q1 2022 30.86 % 25.81 % 9.56 %
Q2 2022 30.44 % 25.38 % 9.45 %
Q3 2022 30.23 % 25.12 % 9.78 %
Q4 2022 30.04 % 25.87 % 9.84 %
Q1 2023 30.65 % 26.64 % 10.67 %


Per Share Data (Riyal)

Compared With The
Period Shares Outstanding (M) EPS (Riyal) Adjusted EPS (Riyal) Book Value (BV)
Q1 2014 1,000.00 1.52 1.50 8.76
Q2 2014 1,000.00 1.56 1.53 8.53
Q3 2014 1,000.00 1.62 1.60 8.99
Q4 2014 1,000.00 1.67 1.65 9.19
Q1 2015 1,000.00 1.71 1.71 9.37
Q2 2015 1,000.00 1.80 1.88 9.62
Q3 2015 1,000.00 1.86 1.94 9.99
Q4 2015 1,000.00 1.92 2.01 10.36
Q1 2016 1,000.00 1.90 2.00 10.51
Q2 2016 1,000.00 2.03 2.05 10.42
Q3 2016 1,000.00 2.09 2.09 11.08
Q4 2016 1,000.00 2.15 2.15 11.36
Q1 2017 1,000.00 2.19 2.19 11.01
Q2 2017 1,000.00 2.20 2.21 11.66
Q3 2017 1,000.00 2.21 2.23 12.26
Q4 2017 1,000.00 2.18 2.18 12.78
Q1 2018 1,000.00 2.20 2.20 13.11
Q2 2018 1,000.00 2.19 2.19 12.87
Q3 2018 1,000.00 2.15 2.15 13.39
Q4 2018 1,000.00 2.01 2.11 13.88
Q1 2019 1,000.00 2.00 2.10 14.24
Q2 2019 1,000.00 1.92 2.02 14.00
Q3 2019 1,000.00 1.87 1.97 14.58
Q4 2019 1,000.00 1.81 1.81 14.65
Q1 2020 1,000.00 1.86 1.86 14.72
Q2 2020 1,000.00 1.92 1.92 14.60
Q3 2020 1,000.00 1.96 1.96 15.33
Q4 2020 1,000.00 1.98 1.96 15.69
Q1 2021 1,000.00 1.99 1.97 16.07
Q2 2021 1,000.00 1.83 1.80 15.46
Q3 2021 1,000.00 1.61 1.59 15.86
Q4 2021 1,000.00 1.56 1.56 16.12
Q1 2022 1,000.00 1.60 1.60 16.32
Q2 2022 1,000.00 1.64 1.64 15.84
Q3 2022 1,000.00 1.69 1.77 16.27
Q4 2022 1,000.00 1.76 1.84 16.67
Q1 2023 1,000.00 1.97 2.06 17.24

Multiple Ratios (End of Period Price)

Compared With The
Period P/E Adjusted P/E Price/book
Q1 2014 25.51 25.87 4.43
Q2 2014 27.08 27.45 4.94
Q3 2014 29.93 30.32 5.39
Q4 2014 27.56 27.91 5.02
Q1 2015 30.66 30.66 5.59
Q2 2015 29.98 28.72 5.62
Q3 2015 27.25 26.13 5.07
Q4 2015 24.57 23.36 4.54
Q1 2016 22.12 21.02 3.99
Q2 2016 21.60 21.39 4.20
Q3 2016 20.28 20.33 3.83
Q4 2016 25.51 25.47 4.82
Q1 2017 25.80 25.76 5.13
Q2 2017 35.02 34.97 6.62
Q3 2017 25.87 25.54 4.65
Q4 2017 24.63 24.63 4.20
Q1 2018 25.19 25.19 4.22
Q2 2018 27.63 27.63 4.69
Q3 2018 23.17 23.17 3.73
Q4 2018 23.86 22.72 3.46
Q1 2019 27.46 26.14 3.86
Q2 2019 27.80 26.42 3.82
Q3 2019 26.60 25.24 3.41
Q4 2019 27.32 27.32 3.38
Q1 2020 25.29 25.29 3.19
Q2 2020 26.98 26.98 3.55
Q3 2020 26.98 26.98 3.45
Q4 2020 27.67 27.96 3.50
Q1 2021 26.17 26.44 3.24
Q2 2021 34.73 35.13 4.10
Q3 2021 35.96 36.43 3.66
Q4 2021 31.18 31.18 3.02
Q1 2022 32.04 32.04 3.14
Q2 2022 32.02 32.02 3.31
Q3 2022 31.47 30.00 3.27
Q4 2022 30.40 29.03 3.21
Q1 2023 28.57 27.41 3.27

Business Segments (Million)

Compared With The
Period Dairy & Juice Poultry Project Bakeries Productions Others.. Arable and Horticulture
Q1 2014 2,125.60 211.10 373.32 8.91 -
Q2 2014 2,547.67 250.35 399.27 89.24 -
Q3 2014 2,603.15 273.64 365.99 26.59 -
Q4 2014 2,625.49 287.67 394.33 23.27 -
Q1 2015 2,353.44 308.98 355.53 19.36 -
Q2 2015 2,869.02 313.95 396.35 70.21 -
Q3 2015 2,756.98 314.83 399.51 52.27 -
Q4 2015 2,761.46 324.49 474.46 23.79 -
Q1 2016 2,577.33 320.83 452.27 23.36 -
Q2 2016 3,054.66 365.77 458.22 47.25 -
Q3 2016 2,722.80 277.65 467.02 62.87 -
Q4 2016 2,606.53 367.26 503.28 31.48 -
Q1 2017 2,494.13 356.37 468.91 64.13 -
Q2 2017 2,920.95 387.41 434.61 17.39 -
Q3 2017 2,570.11 328.31 436.67 37.83 -
Q4 2017 2,525.29 391.54 466.90 35.00 -
Q1 2018 2,356.95 420.64 405.47 49.15 -
Q2 2018 2,752.49 434.66 377.44 62.50 -
Q3 2018 2,405.25 453.37 411.60 47.14 -
Q4 2018 2,404.97 491.69 446.89 37.63 -
Q1 2019 2,333.97 499.50 421.07 54.35 -
Q2 2019 2,782.58 527.14 394.60 60.88 -
Q3 2019 2,552.86 488.96 454.50 76.94 -
Q4 2019 2,540.58 608.99 479.13 75.24 -
Q1 2020 2,520.12 558.39 432.81 81.12 -
Q2 2020 2,966.24 614.62 424.22 76.77 -
Q3 2020 2,770.35 524.75 419.21 148.77 -
Q4 2020 2,666.97 595.02 435.72 121.87 -
Q1 2021 2,581.48 551.84 391.09 120.61 -
Q2 2021 2,895.63 566.18 400.92 142.84 -
Q3 2021 2,720.65 541.62 467.39 212.07 -
Q4 2021 2,943.57 641.81 529.47 142.55 -
Q1 2022 3,116.25 659.47 571.28 156.47 -
Q2 2022 3,136.00 736.35 567.52 170.58 -
Q3 2022 3,138.72 775.78 615.90 238.71 -
Q4 2022 3,113.15 841.84 684.60 199.65 -
Q1 2023 3,448.79 848.03 622.06 147.69 -

Analysts Estimates (Million)

Item Q1 2023 (e) Q1 2023 (a) Change‬
Average 477.25 635.06 33.07 %

Estimates vs Actual (Million)

Item Q1 2023 (e) Q1 2023 (a) Change
U-Capital 677.20 635.06 (6.2) %
Hermes 480.00 635.06 32.3 %
AlJazira Capital 478.80 635.06 32.6 %
Goldman Sachs 470.00 635.06 35.1 %
SNB Capital 468.00 635.06 35.7 %
Al Rajhi Capital 443.00 635.06 43.4 %
Riyad Capital 429.00 635.06 48.0 %
Sico 372.00 635.06 70.7 %

Current
Market Cap (M Riyal) 55,200.00
Enterprise Value (EV) (M) 64,337.56
Shares Outstanding ((M)) 1,000.00
EPS ( Riyal) (TTM) 2.11
Book Value (BV) ( Riyal) 18.34
Par Value ( Riyal) 10.00
Adjusted P/E (Last12) 26.21
P/E (TTM) 26.21
Price/book 3.01
Return on Average Assets (%) (TTM) 6.2
Return on Average Equity (%) (TTM) 11.8

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