Almarai’s net profit rises 18.6% in Q2

Updated 18 July 2016
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Almarai’s net profit rises 18.6% in Q2

DUBAI: Almarai, the Gulf’s largest dairy company, reported an 18.6 percent increase in second-quarter net profit on Sunday, beating analysts' forecasts, showing the benefits of stronger sales and lower commodity prices.
But the company said it would continue to exercise caution due to competitive market conditions in Saudi Arabia, where a slump in oil prices has put pressure on government and consumer spending.
"Given the very competitive market conditions driven by the economic slowdown going forward, the company will continue to exercise caution on its cash-flow generation while focusing on its strategic targets and enhance overall efficiency," it said in a statement.
Almarai made a profit of SR628.8 million ($167.7 million) in the three months to June 30, up from SR530.4 million in the year-earlier period, it said in a statement.
Four analysts polled by Reuters had forecast on average that Almarai would make a quarterly profit of SR530.3 million.
Almarai's shares rose by 2.7 percent in early trading.
The company's sales increased by 10.3 percent, with growth strongest in poultry, bakery, dairy and juice.
The company's cost of sales rose at a lower rate than sales because low commodity prices, improvements in cost management and production savings helped to offset rises in fuel and electricity costs.
Almarai's performance was also boosted by the timing of the Islamic holy month of Ramadan, when consumers usually increase purchases of food and drink products. This year, Ramadan took place predominantly during the second quarter, while last year there was a greater split between the second and third quarters.


Abraaj founder’s extradition hearing adjourned

Updated 18 April 2019
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Abraaj founder’s extradition hearing adjourned

  • The US alleges that Arif Naqvi and his firm raised money for the Abraaj Growth Markets Health Fund, collecting more than $100 million over three years from US-based charities and investors
  • According to the SEC’s complaint, Naqvi misappropriated money from the health fund and commingled the assets with corporate funds of Abraaj Investment Management

LONDON: A case in a London court to extradite Arif Naqvi, the founder of collapsed private equity firm Abraaj, to the US on fraud charges was adjourned until April 26, a court official said on Thursday.
The official said that a former managing partner of Dubai-based Abraaj, Sev Vettivetpillai, had also been arrested and was facing a US extradition request linked to the same charges.
While at Abraaj, Vettivetpillai was head of impact investing in a role that oversaw the firm’s troubled health care fund. Abraaj’s executives are facing US charges that they defrauded investors, including the Bill & Melinda Gates Foundation.
The US Securities and Exchange Commission alleges that Naqvi and his firm raised money for the Abraaj Growth Markets Health Fund, collecting more than $100 million over three years from US-based charities and other US investors.
According to the SEC’s complaint, Naqvi misappropriated money from the health fund and commingled the assets with corporate funds of Abraaj Investment Management and its parent company, and used it for purposes unrelated to the health fund.
Naqvi pleaded innocent last week in a statement released through a PR firm.
He was arrested in the UK earlier this month, while managing partner Mustafa Abdel-Wadood was arrested at a New York hotel, Assistant US Attorney Andrea Griswold told a Manhattan federal court on April 11.