The preliminary financial results of Almarai Company showed an increase in its net profit by 7.96% in the second quarter of 2022, to about 520.36 million riyals, compared to about 481.98 million riyals in the same quarter of 2021.
According to Arabia Net, on a quarterly basis, Almarai's net profit increased by 23.76%, compared to a net profit of about 420.46 million riyals in the first quarter of 2022.
Almarai Company said in a statement on the Saudi Tadawul today, Sunday, that the increase in profits in the second quarter of 2022, on an annual basis, is due to a revenue growth of 15.1%, driven by the growth in baked goods, poultry and fresh dairy products.
The positive growth in revenue was evident in all sectors due to the improvement in business conditions after the (Covid-19) pandemic and the restrictions imposed during it, as well as the re-opening of educational institutions, and the increase in the number of visitors to the region.
The increase in profits is due to an 8.4% increase in gross profit at a lower rate than revenue growth due to higher input costs due to higher prices of corn and soy and dairy production inputs such as butter and alfalfa. In addition, higher transportation fees increased the cost price.
While Almarai’s net profit after zakat and tax increased by 8.4% in the first half of 2022 to about 940.82 million riyals, after zakat and tax, compared to about 867.93 million riyals, profits for the same period of 2021.
