Saudi Arabia’s Almarai, the Gulf’s largest dairy company, reported a 1 per cent increase in fourth-quarter net profit on Sunday, broadly in line with analysts’ forecasts, and said cost controls would continue to be a priority.
Almarai said net profit totalled 488.5 million Saudi riyals in the three months to December 31, up from 483.7m riyals in the year-earlier period.
Six analysts polled by Reuters had forecast on average that Almarai would make a quarterly net profit of 519m riyals.
Almarai said earnings were hit by a 12.4m riyals impairment of assets, changes in foreign exchange rates and higher funding costs during the quarter.
Improving efficiency and cost control measures would remain a priority “given the changing economic environment and the increasing competitive conditions,” Almarai said.
It reported quarterly sales of 3.61 billion riyals in the fourth quarter, up 0.7 per cent from a year earlier.
Saudi retailers had to contend last year with government austerity measures imposed to curb a state budget deficit, including utility price increases and reduced financial allowances for public sector employees.
Almarai said on December 6 that its board had recommended a cash dividend of 0.9 riyal per share for 2016, lower than the cash dividend of 1.15 riyals for 2015.
* Reuters
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