Alamar Foods Co.’s net profit slumped 66% to SAR 14.5 million in Q1 2023, from SAR 43.2 million a year earlier.
| Item | Q1 2022 | Q1 2023 | Change |
|---|---|---|---|
| Revenues | 270.97 | 249.75 | (7.8 %) |
| Gross Income | 98.88 | 69.97 | (29.2 %) |
| Operating Income | 45.26 | 17.56 | (61.2 %) |
| Net Income | 43.24 | 14.32 | (66.9 %) |
| Average Shares | 25.50 | 25.50 | - |
| EPS (Riyals) | 1.70 | 0.56 | (66.9 %) |
| Item | Q4 2022 | Q1 2023 | Change |
|---|---|---|---|
| Revenues | 273.14 | 249.75 | (8.6 %) |
| Gross Income | 90.74 | 69.97 | (22.9 %) |
| Operating Income | 32.05 | 17.56 | (45.2 %) |
| Net Income | 29.54 | 14.32 | (51.5 %) |
| Average Shares | 25.50 | 25.50 | - |
| EPS (Riyals) | 1.16 | 0.56 | (51.5 %) |
The profit decline is attributed to lower gross sales on the back of the foreign currency devaluation in Egypt and Lebanon, in addition to the absence of the sales generated during EXPO Dubai where Alamar was the exclusive Pizza provider, as well as the seasonal shift of Ramadan. However, excluding the aforementioned reasons; gross sales value growth is positive compared to the same quarter last year.
Net profit was hit by sales performance combined with the inflationary headwinds which started impacting the company from H2 2022 resulting in an increase in the cost of sales. In addition, net income was impacted by the cost of the employee stock ownership plan amounting to SAR 3.3 million.
The inflationary headwinds are expected to ease in H2 2023.
The company generated cash flows from operating activities during the current quarter amounting to SAR 23 million.
Sequentially, Alamar’s net profit fell 50.8% from SAR 29.54 million in Q4 2022.
Total shareholders’ equity, excluding minority interest, stood at SAR 319.8 million as of March 31, 2023, compared to SAR 382.26 million a year earlier.
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