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”.
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)
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