Almarai: Announces Interim Results For H1/2015

Riyadh / SA. (ac) Almarai Company is pleased to announce its interim consolidated financial results for the six months ended on 30 June (H1/2015). For this period, the dairy and bakery group reported a jump in sales and profits. Net profit rose 18.4 percent to 706.8 million SAR as a result of sales growth and lower cost of sales. The operating income for H1/2015 amounted to 1.01 billion SAR against 829.3 million SAR in H1/2014. Sales grew 11.3 percent to 6.7 million. For the second quarter, net profit increased 22.4 percent to 530.4 million SAR. Operating profit was up 23.8 percent to 638.7 million SAR. Sales overall were up eleven percent lifted by growth in all segments and lower losses in poultry.

In May Almarai announced a strategic Five Year Plan for the period 2016 to 2020. The Plan will reach 21 billion SAR in total (see b:eu on 2015-05-28). Some days ago the Company announced that it has reached in June 2015 a full and final settlement with Arabian Shield Cooperative Insurance Company (ASICO) regarding its property damage and business interruption claims pertaining to the fire damage to Western Bakeries Plant 1 and 3 in Jeddah on 09th October 2014. The amount finally agreed reached 790 million SAR, net of the policy excesses applicable under both policies. The payment on account of 250 million SAR received by Almarai on 25th March 2015, was off-set against this final payment (see b:eu on 2015-07-01).

Almarai and its subsidiaries are a major integrated consumer food and beverage Group in the Middle East with leading market shares in Saudi Arabia, other Gulf Cooperation Council countries, Egypt and Jordan.

Dairy And Fruit Juices

Dairy, fruit juices and related food business is operated under the «Almarai», «Beyti» and «Teeba» brand names. All raw milk production, dairy and fruit juice product processing and related food product manufacturing activities are undertaken in Saudi Arabia, United Arab Emirates (UAE), Egypt and Jordan.

Dairy, fruit juices and related food business in Egypt and Jordan operates through International Dairy and Juice Limited (IDJ), a joint venture with PepsiCo. The Group manages IDJ operations through following key subsidiaries: Teeba Investment for Developed Food Processing in Jordan and International Company for Agricultural Industries Projects (Beyti) (SAE) in Egypt.

Bakery Products

Bakery products are manufactured and traded by Western Bakeries Company and Modern Food Industries Company, a joint venture with Chipita, under the brand names «L’usine» and «7 Days» respectively.

Poultry Products

Poultry products are manufactured and traded by Hail Agricultural Development Company under the «Alyoum» brand name.

Infant Nutrition

Infant Nutrition products are manufactured by Almarai Baby Food Company Limited and traded by International Pediatric Nutrition Company under «Nuralac» and «Evolac» brands.

Distribution Fleet

Final consumer products are distributed from manufacturing facilities to local distribution centres by the Group’s long haul distribution fleet. The distribution centres in GCC countries are managed through subsidiaries (UAE, Oman and Bahrain) and Agency Agreements (Kuwait and Qatar) as follows:

• UAE – Almarai Emirates Company L.L.C.
• Oman – Arabian Planets for Trading and Marketing L.L.C.
• Bahrain – Almarai Company Bahrain S.P.C.
• Kuwait – Al Kharafi Brothers Dairy Products Company Limited
• Qatar – Khalid for Foodstuff and Trading Company

Fondomonte Farms

The Group owns and operates arable farms in Argentina (Fondomonte Argentina) and in the United States of America (Fondomomte USA), collectively referred to as «Fondomonte», through following key subsidiaries:

• USA – Fondomonte Holdings North America L.L.C.
• Argentina – Fondomonte South America S.A.

The Group’s non GCC business operations under IDJ and Fondomonte are managed through Almarai Investment Holding Company W.L.L., incorporated in Bahrain (Imgage Source: Almarai).