Saudi-based Almarai, the largest dairy company in the GCC, made a net profit of SR654.6 million ($174.3 million) in the three months to September 30, up 10 per cent from 595.1 million ($157.4 million) in the year-earlier period.

The growth in net income was mainly due to a 2.5 per cent jump in sales in the main segments from dairy and juice, bakery.

The cost of sales fell by 1.1 per cent mainly due to better cost management and enhanced production efficiencies and continuous decline of in-puts costs.

Announcing the results, Almarai said its sales increased by 2.5 per cent to SR3.6 billion during the third quarter, compared to SR3.5 billion last year.

The Saudi dairy giant said the gross profit for the third quarter amounted to SR1.55 billion, an increase of 7.7 per cent as compared to the corresponding quarter of the last year (SR1.44 billion).

The operating income for the third quarter surged 9.4 per cent to SR735.8 million, compared to the SR672.7 million during the corresponding quarter of the previous year.

The sales increased by 8.6 per cent to SR11.08 billion during the first nine months ended September 30, as compared to SR10.2 billion in the corresponding period of the last year, said the statement from the company.

Almarai said its gross profit for the first nine months ended 30 September 2016 amounted to SR4.37 billion, up 10.8 per cent compared to SR3.94 billion for the corresponding period last year.

The total shareholders’ equity attributable to shareholders as of September 30 amounted to SR11.1 billion, up 11.2 per cent compared to SR9.9 billion last year, it added.-TradeArabia News Service