Almarai Company Limited Reports Audited Consolidated Earnings Results for the Fourth Quarter and Year Ended December 31, 2012
January 18, 2013
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Almarai Company Limited reported audited consolidated earnings results for the fourth quarter and year ended December 31, 2012. For the fourth quarter, the company generated a consolidated net profit amounting to SAR 369.0 million an increase of 29.2%, compared to the same period last year of SAR 285.5 million and an decrease of 18.0% compared to the third quarter 2012 of SAR 450.0 million. The total gross profit amounted to SAR 869.9 million an increase of 20.2%, compared to the same period last year of SAR 723.8 million. The operating profit amounted to SAR 437.3 million compared to the same period last year of SAR 343.4 million an increase of 27.4%. The reason for higher sales and profit growth for the fourth quarter compared to the corresponding period of the previous year is due to strong performance from all products, especially Poultry and Bakery, as well as the continuation of IDJ consolidation in this quarter. The profit growth in the quarter was negatively affected by continued level of higher material costs and overhead growth due to expansion in new projects, but it was positively affected by capital gains realized on sale of assets.
The consolidated net profit for the twelve months ended December 31, 2012 amounted SAR 1,440.6 million an increase of 26.4% compared to the same period last year of SAR 1,139.5 million. The earnings per share were SAR 3.60 compared to SAR 2.85 for the prior year. The total gross profit amounted to SAR 3,511.1 million an increase of 17.2% compared to the same period last year of SAR 2,996.5 million. The operating profit amounted to SAR 1,672.9 million an increase of 10.2% compared to the same period last year of SAR 1,517.6 million. The full year growth in sales and profit, compared with twelve months of the previous year, is due to its continued diversification into new categories; successful product innovation and continuous improvements in quality and service, all of which have been done with the aim of satisfying consumers needs and has allowed Almarai to maintain its market share position in its traditional segments and increase its market shares in its new segments. The reason for decrease in the fourth quarter income and revenue compared to the third quarter is due to seasonal effects as the holy month of Ramadan in the third quarter. The result of 2011 includes an impairment loss (Zain) of SAR 160.2 million and the result of fourth quarter 2012 includes capital gains of SAR 47.2 million resulting from the sale of land to the government to facilitate road widening in Al Kharj. The company believes its performance, considering the current economic conditions and all other factors mentioned above, is satisfactory.
Almarai Co SJSC is a Saudi Arabia-based integrated consumer food and beverage group. The Group operates under the following segments: Dairy and Juice, Bakery, Poultry and Other Activities. The Dairy and Juice segment is operated under the Almarai, Beyti and Teeba brand names. The Bakery segment products are manufactured and traded by Western Bakeries Company Limited and Modern Food Industries Company Limited, a joint venture with Chipita, under the brand names Lâusine and 7 Days respectively. The Poultry segment products are manufactured and traded by Hail Agricultural Development Company under the Alyoum brand name. The Other Activities segment includes Arable, Horticulture and Infant Nutrition. Infant Nutrition products are manufactured by Almarai Baby Food Company Limited and traded by International Pediatric Nutrition Company under Nuralac and Evolac brands.