The Clap
AlMarai’s (2280) net profits increased by 13% in Q3 2022.
The Deets
The company recorded a net profit of about SAR 463 million riyals, compared to approximately SAR 409 million riyals in Q3 2021, less than analysts’ expectations of SAR 480 million riyals.
Sales
The company’s sales jumped by 21% YoY, to record SAR 4.77 billion, exceeding analysts’ estimates of SAR 4.57 billion.
This increase is justified by the growth in revenues for all sectors, especially the poultry and baked goods sectors, due to the improvement of business conditions post-COVID, the reopening of educational institutions, and an increase in the number of visitors to the region.
Background
In the middle of last year, the company revealed a plan to invest SAR 6.6 billion riyals with the aim of expanding in the poultry sector over several phases within 5 years.
Risks
The company faces risks such as increasing costs for commodities and production inputs due to inflation and supply chain pressures.
Almarai will continue to manage these risks through better hedging activities and inventory optimization.
