Riyadh - Mubasher: Almarai Company, the Middle East’s largest food and beverage manufacturer, has announced its interim condensed consolidated financial results for the second quarter and the first half (H1) of 2026.
The company reported a significant increase in quarterly revenues, reaching SAR 5.87 billion, driven by robust sales volume growth across all markets and product categories.
However, despite the top-line expansion, net profit for the quarter saw a slight decline of 1.70% compared to the same period last year, primarily due to inflationary pressures and rising logistics expenses.
For the three-month period ending 30 June 2026, Almarai’s sales rose by 10.96% year-on-year (YoY), up from SAR 5.29 billion in Q2-25. This growth was supported by expansion projects in the poultry segment and an improved product mix within the dairy category.
Gross profit for the quarter followed this upward trend, increasing by 6.46% to SAR 1.82 billion. Nevertheless, net profit attributable to shareholders edged down to SAR 635.70 million, compared to SAR 646.90 million in the prior-year period.
The company attributed the contraction in net profit to several macroeconomic and operational headwinds. Chief among these were higher feed shipping costs and increased distribution expenses, the latter driven by rising energy prices.
On a segmental basis, the Dairy and Juice division experienced a profit decline due to these logistical and energy costs. Conversely, the Bakery segment reported higher profits following an improvement in its sales mix, and the Poultry (Protein) segment benefited from increased volumes linked to ongoing capacity expansion projects.
When compared to the first quarter of 2026, the company’s performance reflected seasonal shifts in consumer behavior.
Revenue decreased by 4.70% and net profit fell by 13.20% on a quarter-on-quarter basis. This sequential decline was exacerbated by the aforementioned cost inflation in feed shipping and energy-related distribution costs.
In H1-26, Almarai’s total revenue reached SAR 12.03 billion, an 8.80% increase from the SAR 11.06 billion recorded in the first six months of 2025.
Net profit for the half-year period remained relatively stable at SAR 1.37 billion, representing a marginal decrease of 0.70%. The company noted that the six-month results were impacted by specific supply conditions in the poultry market during the first quarter, alongside the persistent inflation in shipping and energy costs.
The half-year performance across business units showed varied results. The Dairy and Juice segment saw a profit increase for the six-month period, aided by a better revenue mix and improved operational performance in the Egyptian market.
The Bakery segment also maintained profitability growth. However, the Poultry segment’s half-year profit was lower than the previous year, primarily due to the supply challenges faced in the first quarter of the year.
Almarai’s financial position remains strong, with total equity attributable to shareholders reaching SAR 20.63 billion, a 6.5 percent increase compared to June 2025.
Earnings per share (EPS) for the H1-26 stood at SAR 1.38, compared to SAR 1.39 in the corresponding period last year.
Looking ahead, Almarai stated it would continue to monitor regional developments closely. The company plans to maintain its focus on effective supply chain management and operational risk mitigation, including the strategic use of inventory coverage to navigate market volatility.
An earnings call for analysts and investors is scheduled for 7 July 2026, to provide further insights into these results.
In Q1-26, the group’s net profits attributable to the owners edged up by 0.14% to SAR 732.22 million from SAR 731.19 million in Q1-25.
