Advertisement
|07 April, 2019

Almarai announces drop in first quarter earnings

The company's shares edged 0.36 percent lower but have added 16.67 percent so far in 2019

A worker stands near trucks with advertisements of Beyti juice and Almarai dairy products at a new factory at Nubaria city in El-Beheira Governorate, east of Cairo, Egypt, March 12, 2016. Image for illustrative purposes.

A worker stands near trucks with advertisements of Beyti juice and Almarai dairy products at a new factory at Nubaria city in El-Beheira Governorate, east of Cairo, Egypt, March 12, 2016. Image for illustrative purposes.

REUTERS/Ehab Farouk

Shares in Saudi Arabian dairy company Almarai edged lower on Sunday after it announced a drop in first quarter earnings for 2019.

Almarai reported a 2.58 percent drop in first quarter (Q1) 2019 net profit after zakat and tax to 336 million riyals ($89.5 million), from 344.9 million riyals in Q1 2018.

Investment bank SICO described the results in a note seen by Zawya as “slightly negative”.

Advertisement

Almarai’s sales rose 3.77 percent to 3.35 billion riyals in Q1 2019, from 3.23 billion riyals in Q1 2018.

“Overall, poultry segment continued to grow followed by bakery and food segment," the note said. "However, profits from the key dairy & juice segment decreased by 4.2 percent YoY (year-on-year) led by both weak market and higher alfa costs."

The company’s shares dropped 0.53 percent by 13:55 GST, but have increased by 16.46 percent since the start of 2019.

(Reporting by Gerard Aoun; Editing by Michael Fahy)
(Gerard.aoun@refinitiv.com)

Our Standards: The Thomson Reuters Trust Principles

Disclaimer: This article is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Read our full disclaimer policy here.

© ZAWYA 2019

More From Markets