Saudi Arabia · Delayed Price · Currency is SAR Almarai Company Earnings Call Transcripts
Fiscal Year 2026
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The five-year plan shifts from building capacity to monetizing it, targeting 1.5x revenue and 1.65x earnings by 2031. Growth centers on the core and selective expansion, backed by SAR 31bn of cash generation and disciplined capital allocation.
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Q3 revenue rose 11% and operating profit 3%, but elevated input, logistics, and ramp-up costs kept net income nearly flat. Broad demand and capacity growth were offset by conflict-driven cost pressure.
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Double-digit revenue growth in Q2 2026 was driven by poultry, Egypt, and water business, with net income stable year-over-year despite higher costs. Margin improvement is expected in H2 as price increases annualize and CapEx declines, while strategic inventory buildup and innovation support resilience.
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Q1 2026 saw 7% revenue growth, driven by strong volume gains in poultry, dairy, and Egypt, with EBIT margin at 14% and net income of SAR 743 million. Management highlighted robust cash flow, ongoing cost pressures from regional conflict, and a positive outlook for protein and non-poultry expansion.
Fiscal Year 2025
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Third quarter saw 7% revenue and 8% net income growth, driven by strong volume gains across all categories and markets, especially Egypt. Poultry faced margin pressure from discounting, while the water acquisition added revenue but diluted margins.
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Q2 2025 saw 3% revenue and 4% net income growth, driven by strong volume gains and market leadership across categories. Capital investments and the PBIC acquisition support long-term growth, while cost pressures from diesel and competitive poultry pricing persist.
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Q1 2025 saw 6% revenue and net income growth, driven by strong GCC performance and robust execution during Ramadan. Margin pressures from diesel and commodity costs are being addressed through efficiency programs, while significant capital investments support future growth.
Fiscal Year 2024
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Revenue grew 7% in 2024 with net income up 13% and margin improvements across all segments. Strong cash flow supported high CapEx and a proposed SAR 1 billion dividend, while efficiency initiatives aim to offset diesel cost headwinds in 2025.
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Q3 2024 saw 9% revenue and 17% net income growth, with all core categories and geographies (except Egypt) contributing. Margins improved on efficiency and stable costs, while significant investments and the Hammoudeh acquisition support future growth.
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Q2 2024 saw 8% revenue and 11% net profit growth, driven by volume gains, cost control, and strong performance across all segments. Management expects continued margin improvement and robust cash flow, with strategic investments in poultry and adjacent categories supporting future growth.