Almarai achieves 10.5% growth in second quarter 2020 earnings
Almarai’s profit for the second quarter of 2020 grew by 10.5% with a net profit of SAR 643.9 million compared to SAR 582.5 million in the second quarter of 2019, while quarterly revenue grew by 8.3% to SAR 4,081.8 million compared to sar 3,767.4 million in the second quarter of 2019.
The company’s first-half profit grew by 11.78% to SAR 1,026.9 million compared to a net profit of SAR 918.6 for the same period a year earlier. Revenue grew by 8.48% to a total of SAR 7,674.3 million for the first half of this year compared to SAR 7,074.1 million for the same period of the previous year.
AlMarai maintained a strong market share across key sectors within its main market in Saudi Arabia, with all sectors of the company, except juices, growing revenue, with the poultry sector performing strongly with a 50.9% rise in net profit as a result of a 16.6% rise in sales supported by higher retail sales throughout the quarter. The baked goods sector grew during the second quarter, achieving a 46.4% increase in profits, taking advantage of economies of scale and lower marketing costs. The dairy and juice sector also improved in the second quarter, despite adverse conditions, to witness relative growth of 4.5%.
The company achieved free cash flow of SAR 1,138.7 million compared to SAR 775.1 million for the same period of the previous year, up 46.9%, supported by expanding operating flows and commitment to reduce capital spending.
Almarai continues to promote the company’s revenue and profit growth, by developing strong and stable profit margins, reducing capital expenditures, strengthening innovation and product development, and exploring new geographic areas and sectors, in line with the company’s medium- and long-term strategy, despite the challenges facing the Gcc economy in general and the additional costs of managing the Corona pandemic.