For the fourth quarter ended Dec. 31, Almarai generated an interim consolidated net income amounting to SR285.5 million, an increase of 0.6 percent, compared to the same period last year (SR283.8 million) and a decrease of (33.5 percent) compared to the third quarter 2011 (SR429.7 million), the company said in a statement posted on the Tadawul website.
It said interim gross profit for the fourth quarter ended Dec. 31, 2011 amounted to SR723.8 million, an increase of 8.3 percent, compared to the same period last year (SR668.3 million).
Almarai said interim operating profit for the fourth quarter amounted to SR343.4 million compared to the same period last year (SR320.4 million), an increase of 7.2 percent.
The interim consolidated net income for the 12 months ended Dec. 31, 2011 amounted SR1,299.8 million, an increase of 1.1 percent compared to the same period last year (SR1,285.4 million).
The interim earnings per share (EPS) for the 12 months ended Dec. 31, 2011 was SR5.65 compared to SR5.59 for the prior year.
The interim gross profit for the 12 months ended Dec. 31, 2011 amounted to SR2,996.5 million, an increase of 9.5 percent compared to the same period last year (SR2,735.9 million).
The interim operating profit for the 12 months ended Dec. 31, 2011 amounted to SR1,517.6 million, an increase of 3.9 percent compared to the same period last year (SR1,460.7 million).
Sales for the fourth quarter amounted to SR2,089.3 million, an increase of 16.1 percent compared to the same period last year (SR1,798.8 million).
Sales for the 12 months ended Dec. 31, 2011 amounted to SR7,951.0 million, an increase of 14.7 percent compared to the same period last year (SR6,930.9 million).
Almarai said it had maintained its market share and target growth rates for all key products, recording 14.7 percent growth for 2011 and 16.1 percent for the fourth quarter, compared with the same period last year.
Almarai’s continuous growth can be attributed to diversification into new categories, successful product innovation and continuous improvements in quality and service.
Consequently, Almarai profit growth recorded 1.1 percent for the year 2011 and 0.6 percent for the fourth quarter, with margins impacted by the increase in raw material costs.
Due to the seasonality in consumption of many products within Almara’s portfolio, a comparison with the same period last year is a valid measurement of Almarais performance as opposed to a comparison with the preceding quarter.
The statement said the results for the fourth quarter did not include any impairment of the investment in Zain.
The fair value of the Zain equity investment has been significantly below cost for a prolonged period of time and Almarai management now consider the investment to be impaired.
Accordingly, management is assessing the quantum of impairment and will recognize the impairment loss in its annual consolidated financial statements for the year ended Dec. 31, 2011.
