Al-Riyad Maintains Neutral on Almarai
The Riyad Capital Company announced that Almarai recorded profits in line with expectations for the third quarter of 2026. However, profitability margins remain threatened due to rising shipping costs. The company maintained a "Neutral" recommendation with a target price of 48 riyals over the next 12 months, compared to the last closing price of 43.60 riyals, with an expected dividend yield of 2.6%. Almarai achieved revenue growth of 11% year-on-year and 5% quarter-on-quarter, reaching 6.2 billion riyals, supported by poultry sales and expansion projects, despite a contraction in gross margin to 29.7% due to increased feed and shipping costs. Net profit for the third quarter amounted to 618 million riyals, a 3% decline quarter-on-quarter, reflecting the company's resilience in facing structural pressures on margins and profits.
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