Almarai: net profit up 10.5% in Q2 2020
06 July 2020
Almarai, the world’s largest dairy producer, has reported net profit of $151.6 million in Q2 2020, a 10.5% increase as compared to Q2 2019. Revenue grew 8.3% to $960.5 million within the same period of time. In Q2 2020, positive revenue was evident in all company’s segments except for juice production due to a decline at the juice market and introduction of a sugar tax in Saudi Arabia back in late 2019.
A recent COVID-19 outbreak has had no dramatic consequences for Almarai’s activities and financial performance. However, the company expects to experience significant challenges ahead of the triple increase of VAT lately announced by Saudi Arabian authorities and aimed to offset the impact of the coronavirus pandemic on the national economy.
So far, Almarai maintains 105,000 dairy cows and produces 1.47 million tonnes of raw milk per year. Alongside dairy farming, Almarai is engaged in diversified food production.