Almarai Company (2280) Q2 2026 earnings summary

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, and robust performance across all segments and channels.

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

• Innovation and new product launches in seafood, ice cream, protein milk, and beverages contributed to margin accretion and portfolio expansion.

• Maintained market leadership in dairy, juice, bakery, and poultry in KSA, with market share gains in juice, bakery, and poultry; dairy share stable.

• Completed acquisition of Pure Beverages Industry Company Limited, marking entry into bottled water segment.

Financial highlights

• Q2 2026 revenue: SAR 5,868 million (+11% YoY); H1 2026 revenue: SAR 12,028 million (+9% YoY); operating profit for Q2: SAR 814 million (flat YoY); net income for Q2: SAR 636 million (-2% YoY).

• Gross margin for Q2 2026 was 31.1%, down from 32.4% in Q2 2025; operating margin at 13.9% for Q2 and 14.0% for H1.

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

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

• Total assets increased to SAR 42,808 million as of 30 June 2026.

Outlook and guidance

• Margin improvement expected in H2 2026 as price increases annualize and CapEx declines.

• CapEx for 2026 projected to finish around SAR 4 billion, down SAR 400 million year-over-year, aiding free cash flow.

• Management continues to monitor regional risks, supply chain conditions, and is assessing IFRS 18 impact for 2027.

• Strategy review underway, with a new five-year plan to be announced in Q3 or Q4.

• Continued investment in inventory to ensure food security and supply chain stability.