Saudi Almarai Company achieved an increase in quarterly profits by 24.18%, as it recorded net profits after zakat and tax of 355.8 million riyals in the fourth quarter of 2022, compared to 286.5 million riyals in the same quarter of 2021.

According to Arabia Net, the net profit of Almarai Company declined on a quarterly basis by 23.18%, compared to a net profit of 463.17 million riyals in the third quarter of 2022.

Almarai Company said in a statement that the increase in profits in the fourth quarter of 2022, on an annual basis, is due to several factors, including an increase in revenues by 13.7% to 4.839 billion riyals, due to the continued positive growth for the year in the fourth quarter, driven by growth in the poultry and bakery sectors. Growth rates also continued due to the expansion of food services and back-to-school services.

It is also due to the increase in the total profits of Almarai Company by 11.8% to 1.33 billion riyals, given that global commodity cost inflation, mainly driven by raw materials for agricultural fodder, especially corn, alfalfa, and mainly butter-related dairy products, led to lower gross profit growth compared to revenue growth.

Good cost control, mainly for sales and marketing as well as general administrative expenses, contributed to stronger growth in operating profit.

Almarai indicated that the growth in net profits was lower than the growth in operating profits due to the high financing cost in line with the increase in SIBOR interest rates.

Almarai’s net profit increased by 12.55% in 2022, to 1.76 billion riyals after zakat and tax, compared to 1.56 billion riyals in 2021.

Almarai Company said that the performance was strong in 2022 and positive growth in revenues was observed in all product categories and in all geographical regions.

And I expected this positive momentum to continue, albeit at a lower rate in the future, with the entry into normal commercial patterns after the full opening of educational institutions and the resumption of tourism activities.

And she continued: The main concerns remain in the high inflation costs of dairy and feed commodities. We continue to see parts of the global supply chain remain under pressure although some areas are now showing signs of price stabilization.

Almarai stated that it will continue to manage these risks through better hedging activities and optimizing stock utilization.