Almarai Company (2280) Q4 2023 earnings summary

Executive summary

• FY 2023 revenue was SAR 19,575,585 thousand, up 4.6% YoY; operating profit rose 18.3% to SAR 2,693,888 thousand and net profit increased 16.4% to SAR 2,049,123 thousand.

• Q4 revenue was SAR 4,919,738 thousand, up 1.7% YoY; operating profit rose 4.9% to SAR 528,895 thousand and net profit increased 4.2% to SAR 370,719 thousand.

• Poultry and fresh dairy led annual growth; cost control supported stronger operating profit despite currency pressure and higher funding costs.

• Q4 net profit fell 24% QoQ amid seasonal consumption patterns.

Financial highlights

• FY gross profit increased 7.6% to SAR 6,051,290 thousand; gross margin reached 30.9% from 30.0% in FY 2022.

• FY basic EPS was SAR 2.08, up 16.1% YoY; attributable profit margin rose to 10.5% from 9.4%.

• Q4 gross profit rose 4.7% to SAR 1,397M and gross margin improved to 28.4% from 27.6%; EPS was SAR 0.37 versus SAR 0.36.

• FY net income bridge included SAR 168M from one-off items: food security support in 2023 and an investment write-off in 2022; zakat expense also compared with a prior-year one-off settlement gain.

• Q4 total comprehensive income declined 27% YoY to SAR 294,516 thousand; FY total comprehensive income rose 7% to SAR 1,799,986 thousand.

Outlook and guidance

• Dairy and farming commodity prices were stabilizing, with benefits from higher inventory coverage expected later.

• Plans include continued share gains in selected categories and geographies, inorganic growth opportunities, and capital deployment under the five-year investment strategy.