Riyadh-Mubasher: Al Rajhi Capital said Q4 financial results of Almarai, which showed growth by 14.7% in net profit and by 10.7% in revenues, came in line with its as well as consensus estimates.

The company’s core dairy business continued to drive growth on the back of an expanding distribution network, the report issuer added.

The poultry segment posted an improved bottom-line performance, with its loss reducing over the last three quarters. However, the bakery segment witnessed a decline in sales due to a fire incident at one of its plants. For 2015, the management expects to maintain a similar top-line growth rate. The poultry segment is also expected to post positive cash flow in 2015 as its operating metrics continue to improve, according to Al Rajhi.

The research firm said Almarai’s current stock price already reflects its growth potential.

“Thus, we reiterate our Neutral rating on the company with a target price of SAR79.9,” said Al Rajhi.

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