Positive performance in core GCC markets, led by Saudi Arabia, resulted in quarterly growth of 5%. The growth was driven mainly by positive contribution from the poultry and dairy categories. However, Almarai group revenue growth was reduced to 2% due to lower sales of commodities in North America and lower contribution from Egypt due to Egyptian Pound devaluation.

• Operating Profit (+5%): Operating profit increased by 5% due to revenue growth, accompanied by stabilized commodity costs and well managed operating costs.

• Net Profit (+4%): Despite higher funding costs, net profit for the fourth quarter of 2023 increased by 4% mainly due to the higher operating profit and partly due to the synergies driven by 100% acquisition of the Egypt and Jordan business earlier in the year.

Contribution of various Business Categories towards the increase in the Consolidated Profit Attributable to Shareholders of 4% is as follows:

• Dairy & Juice Category: Net profit increased compared to last year due to improved sales in key markets in the Gulf countries and strict controls over costs.

• Bakery Category: Higher net profit versus last year driven by revenue growth led by bread and by single serve products.

• Poultry Category: Higher net profit versus last year due to positive volume growth supported from increased production capacity availability early in the year.

The strong performance in core GCC markets resulting in a growth of 8% for the group, led by the poultry and dairy categories. However, the net revenue growth at group level was reduced to 5% due to the devaluation of the Egyptian Pound and lower sales of alfalfa from the USA operations.

• Operating Profit (+18%): Revenue growth supported by cost control and stable commodity costs contributed to operating profit growth of 18% during the current year. The results improved due to the expansion of the poultry category, the launch of several new products and the effect of the increased direct marketing communication with consumers.

• Net Profit Attributable to Shareholders (+16%): Shareholder net profit for the current year was higher than last year due to positive operating profit growth and the acquisition of the 100% share of Group's operations in Egypt and Jordan, despite higher funding costs due to higher interest rates.

• Contribution of individual Business Categories towards the 16% increase in the Consolidated Profit Attributable to Shareholders is as follows:

• Dairy & Juice Category: Net profit increased compared to the previous year due to improved sales in the Gulf countries, and strict cost controls contributing to the category net profit growth. The strong results were achieved whilst managing the impact of the Egyptian pound devaluation in this business category.

• Bakery Category: Higher net profit is driven by both volume and sales growth. The top line growth was driven by multiple factors including improved sales in Bread along with growth in single serve products, product innovation, and economies of scale.

• Poultry Category: The increase in net profit was driven by sales growth aided by additional production capacity and improved operational efficiency.

Stable market environment and strong trading performance have enabled Almarai to post solid growth in profits exceeding SAR 2B.

Almarai rolled out multiple new products during the year and has provided earlier guidance for its plan to enter Seafood and Frozen Bakery business. The expansion of its product portfolio, sustained investment in consumer communication and continual focus on operational efficiency have assisted Almarai to achieve this progressive growth in net profit.

Going forward, Almarai expects its core business to continue to gain market share in selected product categories and geographies, explore additional opportunities to grow inorganically and deploy capital in line with its 5 years investment strategy.