Saudi company Almarai reported strong financial results for the first quarter of 2026, with revenues rising by 7% compared to the same quarter last year, reaching 6.16 billion riyals (equivalent to $1.64 billion).
This positive growth is attributed to the company's exceptional performance during Ramadan, alongside increased sales across most geographical markets, sales channels, and product categories, particularly in the dairy and poultry sectors.
Event Details
Sales jumped by 13% compared to the fourth quarter of 2025, driven by seasonal changes in consumption patterns and an improved revenue mix. In terms of profitability, the results showed stability in net profit attributable to shareholders at 732.2 million riyals (approximately $195.2 million), with a slight growth of 0.1% compared to the previous year.
Cost control and an improved product mix contributed to this stability despite surrounding challenges. Compared to the previous quarter, net profit saw a significant increase of 58%, directly attributed to the rise in sales volume during the Ramadan season and improved operational efficiency. The operating profit for the current period reached 875.1 million riyals (around $233.3 million).
Background & Context
Key operational sectors exhibited varied performance; the net profit of the dairy and juice sector rose due to strong sales, particularly of fresh dairy products during Ramadan. Meanwhile, the bakery sector also reported positive results supported by an improved product mix. Conversely, the protein sector recorded a decline in net profits affected by supply conditions in the poultry market.
Despite these fluctuations, the company maintained good profit margins, with a gross profit margin of 30.3% and a net profit margin of 11.9%.
Impact & Consequences
Almarai reaffirmed its commitment to closely monitor geopolitical conditions in the region while effectively managing supply chain and operational risks, utilizing inventory coverage strategies as needed to ensure business continuity. These results reflect the company's strong financial position, with total equity (excluding non-controlling interests) rising to 21.1 billion riyals (approximately $5.63 billion).
The company plans to hold a call with analysts and investors on April 7 to discuss the results.
Regional Significance
Almarai's results serve as a positive indicator of Saudi companies' ability to adapt to economic changes, especially amid the challenges facing the region. These results also highlight the importance of the food and beverage sector in achieving economic stability.
In conclusion, these results underscore Almarai's success in capitalizing on available opportunities during seasonal periods, reflecting its effective business management strategy and sustainable growth.