Riyadh, (Business News Report) – The profits of the Saudi Almarai have decreased by 14.7% in the fourth quarter of last year, compared to the percentage of the quarter of the year 2020.
The profits of Saudi Almarai recorded 286.5 million riyals, compared to 359.9 million riyals.
Compared to the third quarter of 2021, Almarai’s profits decreased by 29.9%, which was 409.1 million riyals.
The company’s operating profit in the fourth quarter also decreased by 21.5%, to 392 million riyals, compared to 500 million riyals, in the corresponding period of 2020.
Almarai achieved profits in 2021, amounting to 1.56 billion riyals, a decline of about 21%.
The reason for the decrease in net profit attributable to shareholders of the company for the fourth quarter of 2021 compared to the same quarter of the previous year, by 14.7%, is mainly due to several reasons, Almarai Company said in a statement published on the Saudi market website Tadawul.
Revenues increased by 11.5% compared to the previous year, due to improved market conditions compared to the previous year affected by the pandemic related restrictions.
Almarai explained that the main key to growth was the bakery sector, which rose by 21.5%, followed by a rise in the dairy and derivatives sector, which witnessed an increase in fresh and long-lived products by 12% compared to the previous year.
The company explained that the positive growth was witnessed across all countries except for the Kingdom of Bahrain (which did not constitute a significant difference due to the introduction of value-added tax at the beginning of the year).
The progress was noticeable in the Sultanate of Oman, which returned to positive growth after the decline during the past two years due to intense competition in the sector.
Gross profit decreased by 3.2% due to the increase in the cost of agricultural and dairy commodities, in addition to the increase in international freight rates and packaging materials, which contributed to the decrease in the net profit.
On the other hand, selling and distribution expenses increased by 29.6 million riyals, at a rate of 4.9%, in line with the growth in quantity and revenues.
General and administrative expenses increased by 9.9 million riyals, at a rate of 7.6%, in line with the general commercial growth.
Other expenses increased by 7.9 million riyals, due to the impact of the previous year, as the net expenses for the previous year included a one-time profit due to the sale of shares.