Almarai Company (2280) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue grew 7% year-over-year, driven by volume growth, especially in poultry, dairy, and strong Ramadan performance in Egypt and other markets.

• EBIT margin was 14%, slightly down from 15% last year, reflecting inflationary pressures and ramp-up costs in protein.

• Net income reached SAR 743 million, nearly flat compared to SAR 731 million last year, with a net margin of 11.9%.

• Positive free cash flow of 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

• Q1 2026 revenue: SAR 6,160 million, up 7% year-over-year and 13% sequentially, mainly from volume growth.

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

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

• CapEx at SAR 956 million, still elevated but declining versus last year.

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

Outlook and guidance

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

• CapEx is expected to remain elevated but has peaked, with investments supporting future revenue growth.

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

• Ongoing review of pricing and cost efficiency initiatives in response to inflation and geopolitical risks.

• Positive momentum anticipated from strong sales volume and product mix improvements.