Saudi dairy and food maker Almarai Trading Co. – Kingdom's largest food producer by market value – said Saturday its first-quarter net profit rose 2.9 percent to SR242.1 million ($64.6 million) from SR235.2 million a year ago, as wider regional distribution boosted sales. Sales rose by 17 percent on the year to SR2 billion, it said. "In particular, this was driven by bakery growth in the Gulf countries and poultry expansion in the Kingdom of Saudi Arabia," said Almarai in a statement posted on the Saudi bourse's website. The net profit figure represented a decrease of 15.2 percent compared to the fourth quarter of 2011. Almarai said the reason for the lower net profit compared with the previous quarter was "consumption seasonality and the continued impact of higher commodity prices". The higher sales revenue growth was driven by the continued expansion of its distribution network across the GCC, it added. Sales were driven by bakery growth in the Gulf countries and poultry expansion in Saudi Arabia. However this also resulted in higher selling and distribution costs, the statement said. Overall, Almarai said it was "satisfied" with growth indicators, business development and performance in the quarter.
