Margins improvement despite unfavourable costs context
The company reported a 0.28% yoy increase in Q1 2017 revenues to SAR3.383bn. The modest growth is attributed to the decrease in its largest segment’s sales, “Dairy and Juiceâ€, by 3.2% to SAR2.494bn due to lower selling prices and the devaluation of the Egyptian pound. However, the drop was mitigated by the growth of Bakery and Poultry sales by 3.7% to SAR469m and by 11.1% to SAR356m, respectively. By geographic zone, Saudi Arabia sales increased by 4.7% while sales in the KSA grew by 2.1%, yoy.Almarai is an integrated consumer food group in the Middle East, based in Saudi Arabia, and active in the neighbouring Gulf Cooperation Council (GCC) countries. Co.'s dairy, fruit juices and related food business is operated under the Almarai, Beyti and Teeba brand names. Raw milk production and related processing and food manufacturing activities are undertaken in Saudi Arabia, United Arab Emirates, Egypt and Jordan. Final consumer products are distributed from facilities in these countries to local distribution centers by Co.'s long haul distribution fleet. Bakery products are manufactured under the brand names L'usine and 7 Days. Poultry products are manufactured under the Alyoum brand.
AlphaMena is the MENA stocks leader in independent equity research, covering 142. MENA securities spanning across 19 sectors and 8 countries relaying on a team of 11 analysts. The breadth of coverage allows AlphaMena to formulate a coherent view on markets, sectors and to highlight the best investments in Mena zone using a robust homogeneous and transparent methodology, enabling pure and pertinent comparisons based on financial and extra-financial criteria.
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