Riyadh – Mubasher: Almarai Company on Sunday said its profits were nearly unchanged in the six-month period ended 30 June, whereas for the second quarter of 2018, profits dipped slightly.

The dairy-specialised firm logged SAR 1.004 billion ($270 million) in the period between January and June, compared to SAR 1.002 billion achieved in the year-ago period.

Gross profits amounted to SAR 2.758 billion, up slightly from SAR 2.732 billion in H1-17, while operating profits grew 2.57% year-on-year to SAR 1.240 billion, Almarai said in a filing to the Saudi Stock Exchange (Tadawul).

It attributed its first half results to a 4.7% decline in cost of sales, citing enhanced cost management and production efficiencies as well as stable commodity costs despite the increased alfalfa costs.

Earnings per share stood at SAR 0.98 in H1-18 versus SAR 0.97 in the same period of 2017.

As for Q2-18, Almarai achieved SAR 660.6 million in profits, attributable to shareholders, down 2% from SAR 674.1 million in the corresponding period of 2017.

Quarter-on-quarter, the Saudi food and beverage firm’s profits surged 91.92% from SAR 344.2 million.

Almarai attributed its year-on-year profit fall to a 0.8% “decline in export sales, changes in demographics, a general contraction in the market coupled with an increase in product promotions and general changes in the product portfolio mix.”

Gross profits decreased 3.17% to SAR 1.506 billion in Q2-18 compared to SAR 1.555 billion in the same period last year on the back of higher cost of sales from increased alfalfa costs and labour costs.

“This has been partially offset by better cost management, stable commodity costs, and enhanced production efficiencies,” the Saudi dairy firm stated.

Almarai’s operating profits slipped to SAR 759.7 million from SAR 788.2 million in H1-17.