RIYADH – Saudi Arabian dairy and food producer Almarai Co. posted a 4.7 percent rise in net profit in the third quarter of this year, the company said in a statement on the Tadawul website Monday. Saudi Arabia's biggest listed food company by market value said third-quarter earnings were SR450 million ($120.00 million) for the period ended Sept. 30, compared with SR429.7 million a year-ago. Revenue for the quarter rose 27 percent to SR2.7 billion from SR2.1 billion a year-ago, helped by strong performance at its bakery and poultry unit, Almarai said. “High material costs resulting from ongoing erratic commodity prices, and also persistent increase in overhead costs due to the expansion in new projects” hurt profitability, Almarai said. Almarai's board approved a $4.2-billion five-year investment plan in May to boost product innovation and develop its Saudi workforce. Almarai has been keen to expand outside its core Gulf region. In December, the company acquired Fondomonte S.A, which owns and operates farms in Argentina, to secure feed for its dairy herd and poultry businesses. The company also raised SR1 billion through its first Islamic bond in March. – SG
