JEDDAH: Saudi Arabia’s Almarai, the Gulf’s largest dairy company, has reported an 8.8 percent increase in second-quarter net profit as sales rose.

Almarai made a profit of SR433.3 million ($115.5 million) in the three months to June 30, up from SR398.2 million in the year-earlier period, according to a statement to Riyadh’s bourse.

The firm said second-quarter sales rose 14.4 percent to SR3.29 billion from higher sales in core parts of the business.

Almarai’s selling, distribution and general expenses all increased in the second quarter because of its expansion “across product categories and geographies” and rising depreciation costs from earlier investments.

This meant Almarai’s net profit margin fell to 13.2 percent of sales in the second quarter from 13.9 percent in the corresponding period of 2013.

The firm made a net profit of SR706.9 million in the first half of 2014, up from SR653.3 million a year earlier.