Almarai third-quarter net income slips amid continued pandemic headwinds
10 October, 2021
Saudi Arabia's Almarai, the Middle East's biggest dairy company, said net income for the third quarter fell an annual 34 per cent on lower margins and continued Covid headwinds.
Net profit attributable to the company’s shareholders for the three-month period to September-end dropped to 409 million Saudi riyals ($109.1m), from the same period a year earlier, Almarai said in a statement on Sunday to the Tadawul stock exchange, where its shares are traded
Gross profit for the period declined about 16 per cent 1.27 billion riyals during the quarter, from the same period a year earlier. Overall third-quarter revenue, however, rose an annual 2 per cent to 3.94 billion riyals, the company said.
“Almarai faced a challenging quarter due to the base year effect of Covid-19 and rising commodity costs,” the company said. “Despite continued commercial normalisation post Covid-19 restrictions, core product revenues dropped by 3 per cent within GCC countries.”
The drop in revenue was even higher for food sales due to one-off purchase made in this category last year.
“The GCC revenue decline was partially offset by growth in bakery sales due to partial opening of educational institutions,” the company said.
Source: www.thenationalnews.com
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