Almarai Company (2280) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue grew 3% year-over-year to SAR 5.288 billion, the highest in 13 quarters, with H1 2025 revenue at SAR 11.06 billion, up 4.2%, led by strong performance in KSA, UAE, and Kuwait.

• Net income for Q2 2025 rose 4.2% year-over-year to SAR 647 million, with H1 2025 net income up 4.9% to SAR 1.38 billion, and net income margin at 12.2%.

• Growth was driven by strong volume in food, bakery, and poultry, with double-digit poultry volume growth despite pricing pressures.

• Maintained market share leadership across all major categories in KSA, including Dairy, Juice, Food, Bakery, and Poultry.

• Continued innovation pipeline with new product launches in dairy, bakery, poultry, and ice cream.

Financial highlights

• Q2 2025 operating profit was SAR 813 million (+3% YoY, 15.4% margin); H1 2025 operating profit reached SAR 1.69 billion (+1.5% YoY).

• Gross profit margin for Q2 2025 was 32.4%; net profit margin at 12.2%.

• Basic EPS for H1 2025 was SAR 1.39, up from SAR 1.33 in H1 2024.

• Free cash flow for H1 2025 was SAR 218 million, down from SAR 1,249 million in H1 2024, reflecting higher capex.

• Net debt increased to SAR 10,764 million at Q2 2025, with net debt/EBITDA stable at 2.3x.

Outlook and guidance

• Confident in continued growth for H2 2025, with poultry expansion and bakery price increases (SAR 150–200 million annualized impact) to support brand growth and offset cost pressures.

• No planned dairy price increases; bakery pricing effective from July onward.

• Focus remains on profitable growth, with EBIT margin target range of 14–16%.

• Expansionary capex cycle continues, with capital investment rising in line with long-term plans.

• Available credit facilities increased to SAR 6.8 billion at H1 2025, supporting future growth.