Almarai: Profit up 42 percent on Sales in Q2/2008

Riyadh / SA. (ac) In the first half of 2008 Saudi Almarai Company generated a consolidated net profit of 397,4 million SAR, an increase of 109,3 million SAR or 37,9 percent compared to the same period last year (288,1 million SAR). The consolidated net profit for the quarter grew by 42,3 percent to 235,2 million SAR compared to the same period last year (165,3 million SAR).

Sales for the period ended 30 June, 2008 amounted to 2’366,6 million SAR compared to 1’712,7 million SAR for same period last year, which represents an increase of 38,2 percent. The consolidated income from main operations also grew substantially by 39,3 percent to reach 467,7 million SAR versus 335,7 million SAR for the comparative period last year. The earnings per share (EPS) for the period ended 30 June, 2008 increased to 3,65 SAR compared to 2,64 SAR in the same period 2007. This performance is the result of the company´s plans to achieve continued growth in sales and profits.

In June 2008, the Board reviewed the company´s five-year plan and expressed satisfaction with the progress to achieve the goals of the plan. They also approved a capital investment plan estimated at six billion SAR for the five year starting 2009 until 2013. These significant investments will further strengthen Almarai´s position as the leader in the GCC food market, as well as ensuring the Company´s continued strong profit growth and return on investment.

In 2007 Almarai began consolidating the earnings of two 2006 acquisitions: Western Bakeries Company Limited and International Baking Services Company Limited. It paid 709 million SAR in stock for both. This acquisition expanded the product range to pastries, cakes, breads and other bakeries products. Today Almarai is an integrated organisation spanning the food supply chain from dairy farms and arable farms through to retail outlets in six gulf countries.