Almarai Company (2280) investor relations material

Executive summary

• Revenue grew 11% year-over-year in Q2 2026 to SAR 5,868 million, driven by poultry, Egypt, and water business, with strong contributions from KSA, Egypt, and Kuwait.

• Net income was SAR 636 million in Q2 2026, broadly flat or down 2% year-over-year, as higher funding, logistics, and commodity costs offset revenue gains.

• For H1 2026, revenue reached SAR 12,028 million, up 9% year-over-year, with net profit at SAR 1,368 million, down 1%.

• Completed acquisition of Pure Beverages Industry Company Limited, entering the bottled water segment.

• Innovation and new product launches in seafood, ice cream, protein milk, and beverages supported growth and margin improvement.

Financial highlights

• Q2 2026 revenue: SAR 5,868 million (+11% YoY); H1 2026 revenue: SAR 12,028 million (+9% YoY).

• Q2 2026 operating profit: SAR 814 million (flat YoY); net income: SAR 636 million (-2% YoY); gross margin: 31.1% (down from 32.4%).

• H1 2026 operating profit: SAR 1,689 million (flat YoY); net income: SAR 1,368 million (-1% YoY); gross profit: SAR 3,690 million (+6% YoY).

• Earnings per share for H1 2026: SAR 1.38; Q2 2026: SAR 0.64.

• Free cash flow for H1 2026: SAR 215 million; Q2 2026: SAR 42 million, both lower year-over-year due to inventory buildup.

Outlook and guidance

• Management expects margin improvement in H2 2026 as price increases are realized and cost pressures moderate.

• CapEx is expected to taper, with full-year 2026 CapEx forecasted at SAR 4 billion.

• Free cash flow projected to improve as CapEx and inventory normalize.

• Ongoing monitoring of regional risks, supply chain, and IFRS 18 impact for 2027.

• Continued focus on innovation, margin-accretive products, and expansion in poultry, seafood, and red meat.