Almarai profit rises despite Egyptian pound devaluation

Saudi Arabia’s largest dairy producer, Almarai, said profit rose 9 percent year on year as a result of higher volume growth and the ability to absorb the adverse impact of the Egyptian pound devaluation.

Net profit reached SAR692 million ($184 million) in the first quarter of 2024, compared with SAR635 million a year ago, driven by annual revenue growth of 8 percent to SAR5.5 billion, effective cost control and stabilised commodity costs.

---

Newsletter
Get the Best of AGBI delivered straight to your inbox every week

---

The profit of the dairy and juice segment rose year on year as a result of improved sales in core GCC markets and tight cost management.

The bakery segment’s profit was higher than last year because of production efficiencies and seasonal adjustments in consumption patterns. In addition, the poultry segment’s profit rose annually due to improved economies of scale.

Almarai expects this growth to continue, supported by stable macroeconomic conditions and improvement in tourism levels across the kingdom.

• Almarai’s $4.8bn push to advance Saudi food security
• Saudi Arabia aims to double local honey production
• Spinneys bets big on sales growth for own-label goods

Dairy and feed commodities will continue to remain stable despite some negative impacts from international shipping lines.

“We will continue to manage these risks by optimising our hedging activities and by leveraging our inventory cover, where appropriate,” the dairy producer said.