Sadafco profits surpass estimates despite Polish unit challenges
Almarai, a company specialized in dairy products, juices, and ice cream, achieved profits higher than expectations despite declining by 25% due to the impact of its subsidiary in Poland, Mlekoma. The company's revenues fell by 2.6% to 750 million SAR, mainly because of a 51% decline in Mlekoma’s sales, which account for 8% of Almarai's total revenue compared to 16% in the same period last year. Nevertheless, revenues from other product categories increased by approximately 7%, and sales in emerging markets rose, leading to a 0.7% increase in the company's share price after the announcement. Profit margins were affected by rising costs of raw materials and fuel due to regional tensions, resulting in a 25% decrease in net profit to 88.2 million SAR, with overall margins shrinking. Despite these pressures, the company remains strong in terms of market share and attractive dividend distribution, having paid 16 SAR per share with a yield of 7.9%.
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