|• Revenue by Region: For Third quarter of 2021 as compared to the corresponding quarter of last year, the Revenue decline in Saudi Arabia and in other GCC by 2.2%, 4.9% respectively. In Other Countries revenue growth by 32.1%. For the nine months period ended 30th September 2021 as compared to the corresponding period of last year, the Revenue decline in Saudi Arabia and in other GCC by 4.0%, 6.0% respectively. In Other Countries revenue growth by 39.3%.|
• EBITDA: For Third quarter 2021 Earnings before Interest, Taxes and Zakat, Depreciation and Amortization (EBITDA) reached SAR 879.1 million, a decrease of 23.7% as compared to the corresponding quarter of last year (SAR 1,151.4 million). For the nine months period ended 30th September 2021 Earnings Before Interest, Taxes and Zakat, Depreciation and Amortization (EBITDA) reached SAR 2,706.8 million, a decrease of 14.8% as compared to the corresponding period of last year (SAR 3,176.0 million).
• Profit Margins: For Third quarter of 2021, The Gross Profit, Operating Profit and Consolidated Profit Attributable to Shareholders of the Company are representing 32.4%, 13.2%, and 10.4% of Revenue as compared to the corresponding quarter of last year of 39.2 %, 19.4 %, and 16.1 %, respectively. For the nine months period ended 30th September 2021, it represents 33.4%, 14.0%, and 11.0% of Revenue as compared to the corresponding period of last year of 37.3%, 17.5%, and 14.3%, respectively.
A summary of the Statement of Cash Flows for the Nine Months ended 30th September 2021 is as follows:
- The Cash Generated from Operating Activities (OCF) reached SAR 3,482.8 million, an increase of 18.7%, as compared to last year (SAR 2,934.2 million). This was mainly driven by better working capital management, mainly driven by lower inventory post the supply chain surge during the COVID-19 pandemic. The OCF represents 30.0% of Revenue as compared to 25.4% for the last year.
- The Cash used in Investing Activities reached SAR 1,200.5 million as compared to the same period last year (SAR 402.9 million), an increase of 198.0%. Investing Activities represent 10.4% of revenue as compared to 3.5% for the last year. Investing cashflow reduce significantly as capex program was limited to mainly replacement and existing capex pipeline.
- The free cash flow (FCF) reached SAR 2,282.3 million as compared to the last year (SAR 2,531.3 million), a decrease of 9.8%. The FCF represent 19.7% of revenue as compared to 21.9% for the last year. This was driven by expansion in our OCF and commitment to reduced capital expenditure.
The first 9 months of the year have proven quite challenging. Trading conditions have continued to be normalized during the year. However, the base year effect of COVID-19 has resulted in a benign growth in top line for the year. The top line growth was driven by mainly Egypt, Jordan and export markets whereas the normalization effect of covid resulted in lower sales in GCC countries relative to year 2020.
Despite these challenges in trading markets, Almarai has continued to exercise cost control on its entire supply chain to deliver value for its customers. Majority of the costs faced were structural in nature including abolition of subsidy and using 100% imported alfalfa ration. In addition, higher costs in commodity markets, especially corn and soya, are now impacting current cost run rates. These cost increases are partially offset by savings in funding cost and cost saving initiatives. In summary, the net profit. As a result, the operating profit has declined by 19.8% due to this structural adjustment.
Almarai is developing multiple scenarios to manage these impacts and will roll out additional plans during the next few quarters to ensure the supply of quality products to its customers, whilst maintaining a healthy return for its shareholders
The Consolidated Financial statements for the Nine Months ended 30th September 2021 will be available through the following link on Almarai Website, and Almarai IR App.
Conference call for analysts and investors will be on 12th October 2021 at 4:00 p.m. KSA time.
The presentation accompanying the conference call will be available on Almarai website within the Investors section under Earning Presentations at: