Almarai Company (2280) Q3 2025 earnings summary

Executive summary

• Achieved 7% year-over-year revenue growth in Q3 2025, reaching 5,553M SAR, with strong performance in KSA, Egypt, and UAE, and net income up 8% to 613M SAR.

• Year-to-date Q3 2025 revenue grew 5% to 16.61B SAR, with net income up 6% to 1.99B SAR.

• Growth was primarily volume-driven, with pricing slightly negative due to discounting, especially in poultry.

• Acquisition of Pure Beverage Industry Company (water business) contributed to revenue but was dilutive to EBIT margin.

• Maintained market share leadership across core categories in KSA, with notable gains in juice and bakery.

Financial highlights

• Q3 2025 operating profit increased 2% year-over-year to 757M SAR; gross margin for Q3 2025 was 31.5%.

• Free cash flow for Q3 2025 was 316M SAR, reversing a negative trend from Q3 2024; CapEx for the quarter at 1B SAR, focused on expansion.

• Net debt increased to 11.97B SAR, with a net debt/EBITDA ratio of 2.1x.

• Working capital increased, partly due to acquisition and higher safety stock amid geopolitical uncertainty.

• Basic earnings per share for the nine months was 2.01 SAR, up from 1.91 SAR year-over-year.

Outlook and guidance

• Continued focus on operational efficiency, cost control, and volume growth across categories and markets.

• Poultry expansion remains a strategic priority, targeting 450 million birds capacity over three years.

• Expansion in adjacent categories, notably water, following the acquisition of Pure Beverage Industry Company.

• Anticipates ongoing margin pressure from transportation and input costs, but operational efficiencies and category mix are key levers.

• Water business expected to become accretive to margins over time.