Monday, Jul 11, 2011
DUBAI (Zawya Dow Jones)--Saudi Arabia's Almarai Co. (2280.SA), the region's largest dairy producer, said Monday it will cancel a recent price hike for some of its dairy products to comply with a move by the ministry of commerce and industry to curb price increases made arbitrarily.
Almarai is taking the price of its 2 litre fresh milk and laban pack sizes in the kingdom back to levels prior to July 1 with immediate effect, it said in a statement posted on the Saudi bourse website.
However, Almarai believes that the rationale and justification for the price increase is still valid, it added.
On Sunday, the kingdom's Ministry of commerce and industry warned dairy companies that have arbitrarily increased prices of fresh milk and laban packs. The ministry said that whoever increases prices or refuses to sell at prices specified for fresh milk and laban packs will be considered to have violated rules and will face penalties.
Almarai shares closed -2.1% at SAR94.75 Sunday; the stock slipped 0.3% Saturday after the company said its 2Q net profit edged up 1.8% on year to SAR349.3 million. NCB Capital noted, in summary, this was a weak but in-line set of numbers from Almarai.
-By Summer Said, Dow Jones Newswires; +966-546-842373; summer.said@dowjones.com
Copyright (c) 2011 Dow Jones & Co.
(END) Dow Jones Newswires
11-07-11 0645GMT
