Almarai Co. — Earnings Release 2013

Jan 19, 2014

Almarai Company announces its annual consolidated financial results for the period ending 31 December 2013 (Twelve Months)

2280 · 19/01/2014 10:34:01 · Announcement #32941 · View on Saudi Exchange

Almarai Company announces its annual consolidated financial results for the period ending 31 December 2013 (Twelve Months)

Element	Current quarter	Similar quarter for previous year	% Change current	Previous quarter	% Change previous
Net profit (loss)	373.3	369	1.17	475.6	-
Gross profit (loss)	984.6	869.9	13.19	1,104.9	-
Operational profit (loss)	458.2	437.3	4.78	553.6	-
All figures are in (Millions) Saudi Arabia, Riyals

Element	Current period	Similar period for previous year	% Change
Net profit (loss)	1,502.2	1,440.6	4.28
Gross profit (loss)	3,951.8	3,511.1	12.55
Operational profit (loss)	1,796.6	1,672.9	7.39
Earning or loss per share, Riyals	2.5	2.41	-
All figures are in (Millions) Saudi Arabia, Riyals

Element	EXPLAINATION
Reasons of increase (decrease) for quarter compared with same quarter last year	Net income for the fourth quarter has grown at 1.2% over 2012 due to the following reasons. Sales have grown strongly at 13.7% during the fourth quarter driven by accelerating growth in sales of dairy and juices, poultry and bakery by 12.8% and 32.1% and 11% respectively. The company has experienced increasing dairy commodity costs during the quarter which have been mitigated through an effective portfolio management resulting in a relative stable cost of sales. The net profit growth in the quarter has been been limited by the previous year SAR 47.2 million capital gains (due to the sale of land to the government to facilitate road widening in Al Kharj) and by increasing depreciation and funding costs as a result of the investment program.
Reasons of increase (decrease) for period compared with same period last year	Net income for the year has grown at 4.3% over 2012 due to the following reasons. The full year growth of sales (13.5%) compared to 2012 is due to strong sales performance from all products, especially dairy and juice (10.8%), poultry (57.1%) and bakery (12%). Despite strong gross profit growth (12.6%) and tight expenditure control, the net income for the year has been restricted due to increasing depreciation and funding costs as a result of the investment program.
Reasons of increase (decrease) for quarter compared with previous quarter	The reason for decrease in the fourth quarter income compared to the third quarter is due to seasonal effects in the third quarter (peak summer months) and the effect of holy month of Ramadan in the third quarter. Due to the nature of Almarais portfolio and the associated seasonality in product sales and consumption, Almarai believe that a comparison with the same period last year is a more relevant measurement.
Reclassifications in quarterly financial results	Some prior year comparatives have been regrouped to conform with current year classification.
Other notes	The company is satisfied with its business performance which is in line with its strategic development plan. Noted that the basic Earnings per Share (EPS) is calculated by dividing income from main operations and net income, attributable to shareholders for the year by the weighted average number of issued shares of 596.2 million and 597.1 million at 31 December 2013 and 31 December 2012 respectively. Diluted Earnings per Share is calculated by dividing income from main operations and net income, attributable to shareholders for the year by 600.0 million shares which represent the weighted average number of issued shares at 31 December 2013 and 31 December 2012 including treasury shares. In both cases the weighted average number of shares has been retrospectively adjusted for the prior year to reflect the effect of the bonus share issue as results of capital increase.

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