JEDDAH — Saudi Arabian dairy and bakery firm Almarai has reported a jump in sales and profits for the first half of the year. Net profit rose 18.4% to SR706.8 million ($188.4 million) for the six months ended 30 June as a result of sales growth and lower cost of sales. Operating income was up to SR1.01 billion against SR829.3 million for the period. Sales grew 11.3% to SR6.7 million.
For the second quarter, net profit increased 22.4% to SR530.4 million. Operating profit was up 23.8% to SR638.7 million.
Sales overall were up 11% lifted by growth in all segments and lower losses in poultry.
The dairy firm in May said its board approved a capital investment plan which will reach SR21 billion in the next five years. Almarai said last month the final amount of compensation it would receive from its insurer after a fire at one of its bakeries last year was SR790 million ($210.6 million), according to a bourse filing.
The Saudi Arabian company had already received SR250 million from Arabian Shield Cooperative Insurance Co in late March, which it booked in its first-quarter results.
This March award would be offset against the amount agreed with the insurer on June 27, which was net of policy excesses, Almarai said in its statement. —SG/Agencies
