Almarai Company (2280) Q4 2024 earnings summary

Executive summary

• Achieved full-year revenue of SAR 20,980M, up 7% year-over-year, with Q4 revenue at SAR 5,157M, up 5% compared to Q4 2023; growth was broad-based across all geographies, categories, and channels.

• Net income for FY 2024 rose 13% to SAR 2,313M; Q4 net income increased 16% to SAR 431M, with margin improvements across gross, operating, and net levels.

• Maintained number one market share in all operating categories in KSA, with strong ambitions for further growth and market leadership reinforced.

• Strong operational control and cost efficiency supported margin expansion despite inflationary pressures.

Financial highlights

• FY 2024 operating profit increased 11% to SAR 2,995M (14.3% EBIT margin); Q4 operating profit up 12% to SAR 591M.

• Gross profit margin improved to 32% for FY 2024 (up from 31%); Q4 gross profit margin at 31%.

• Free cash flow for FY 2024 reached SAR 1.5B, with SAR 555M generated in Q4 and operating cash flow at SAR 6.0B.

• Net debt/EBITDA reduced to 2.07, with net debt at year-end SAR 9,655M, reflecting strong cash generation and stable debt levels.

• Earnings per share (EPS) for FY 2024 reached SAR 2.34, up 13% year-over-year.

Outlook and guidance

• Poultry capacity expected to reach a run rate of 300 million birds by end of 2025, ramping up to 450 million as investments complete.

• Diesel cost increase of SAR 200 million anticipated in 2025, with efficiency initiatives underway to offset impact.

• No material impact expected from Pillar Two tax changes; incremental effect estimated at SAR 20-25 million in 2025.

• Management expects continued positive momentum across all channels, products, and geographies, but no forward-looking guidance on top or bottom line provided.

• Capital expenditure is set to rise in line with the long-term expansion plan, supporting future growth.