Almarai Co. — Earnings Release 2006

Apr 9, 2006

Almarai announces a record first quarter profit of SR 90.6 million, representing an increase of 16.2% compared with the same period in the prior year.

2280 · 09/04/2006 13:03:43 · Announcement #8535 · View on Saudi Exchange

Almarai announces a record first quarter profit of SR 90.6 million, representing an increase of 16.2% compared with the same period in the prior year.

Almarai Company today announced its results for the first quarter of 2006.

Net profit for the first quarter increased by 16.2% to SAR 90.6 million compared to the same period in the prior year.

Commenting on these results, His Highness Prince Sultan Bin Mohammed Bin Saud Al Kabeer stated:

?These excellent first quarter results reflect Almarai?s significant growth in sales revenue year on year as well as the efficient management of its resources. This has been driven by increased sales volumes and positive production efficiencies as a result of the Company?s new production and distribution facilities which are now fully commissioned. This reduced the impact of external factors such as increased prices of raw material due to escalating commodity prices as well as increased depreciation and funding costs due to the Company?s significant expansion of its production and distribution facilities.?

In the first quarter sales increased by 31.5% to SAR 621.5 million compared to the same period in the prior year. Gross profit for the period increased by 23.5% to SAR 226.7 million compared to the same period in the prior year.

Net assets increased by 35.6% to SAR 1,519.3 million reflecting the recent investment made by the company in the significant expansion of its production and distribution facilities and in particular the commissioning of the Company?s new processing plant.

I would like to thank the Board as well as the management and employees of the company for their hard work and support in ensuring the continuing success of Almarai. Based on the results for the first quarter and the expectation of current market conditions continuing I look forward to a very strong 2006 for Almarai?

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