Almarai Company (2280) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue grew 7% year-over-year to SAR 6,160 million, driven by volume growth, strong Ramadan performance, and robust results in KSA, Egypt, and UAE.

• Net income remained stable at SAR 732-743 million, with net margin at 11.9%, supported by disciplined cost control and improved product mix.

• EBIT margin was 14%, slightly down from last year, reflecting inflationary pressures and ramp-up costs in protein.

• Free cash flow was positive at SAR 173 million, reversing a negative position last year.

• No significant operational impact from the Iran crisis in Q1, but management is closely monitoring future risks.

Financial highlights

• Gross profit increased 5.5% year-over-year to SAR 1,866 million, with gross margin at 30.3%.

• EBIT margin at 14%, within the target 14%-16% range.

• Net income at SAR 732-743 million, net margin 11.9%, slightly lower than last year.

• CapEx at SAR 956 million for Q1, with TTM Q1 2026 capex at SAR 4,235 million.

• Free cash flow positive at SAR 173 million for Q1.

Outlook and guidance

• Management expects continued volume-driven growth, especially in Egypt and poultry, and ongoing focus on cost management and supply chain risk.

• CapEx is expected to remain elevated but has peaked, supporting future revenue growth and capacity expansion.

• Dividend payout ratio guided at 40%-60% of net income, with a proposed 15% increase over last year.

• Ongoing review of pricing, cost efficiency, and operational risk management in response to inflation and geopolitical risks.