Dairy sales grow as Almarai announces 2015 financial results

Almarai Company, in Riyadh, Saudi Arabia, has announced its annual consolidated financial results for the year ending December 31, 2015.

For the fourth quarter, Almarai consolidated net income reached $129m (SAR 483.7m), an increase of 13% compared to the corresponding quarter of the previous year and a decrease of 18.7% compared to the previous quarter.

The total gross profit for the fourth quarter amounted to $356.9m (SAR 1,338.4m), an increase of 10.3% compared to the corresponding quarter of the previous year. The consolidated net income for the year amounted to $510.8m (SAR 1,915.7m), an increase of 14.4%.

The total gross profit for the year amounted to $1.41bn (SAR 5,283.3m), an increase of 15%.

Dairy net income up

The statement said that the growth in net income for the fourth quarter of 13%, compared to the corresponding quarter of the previous year was due, in part, to growth in sales of 7.6%.

This was as a result of continuous sales growth in the main segments from bakery by 20.3%, poultry of 12.8% and dairy and juice of 5.2%.

Overall, the result of core business segments showed dairy and juice decreased by 8.5%, bakery increased by 65.6% and poultry losses declined by 32.1%.

Growth in sales of 9.4% was shown by the company to be as a result of continuous sales growth in the main business segments, with an increase in dairy and juice of 8.5%.

Company satisfied with progress

The sales growth in the fourth quarter in Saudi Arabia and GCC countries is 11.2% and 2.2% respectively while other countries sales decreased by 0.4%. For the year, sales growth in Saudi Arabia, GCC countries and other countries was 9.4%, 8.1%, and 13.5% respectively.

The statement released by Almarai noted that, overall the company is satisfied with its business performance which is in line with its strategic plan: sales, profitability and cash flow metrics grew while the company has been able to increase its production capacity to meet consumer demand.