Almarai's commitment to 'excellence in execution' drives growth and wins consumer trust

Almarai Key Financial Highlights

    Year Ended 31 December  
(SAR million) 2015     2014     2013     2012     2011    
OPERATIONAL PERFORMANCE
Sales 13,795 12,606 11,219 9,883 7,951
Gross Profit 5,282 4,535 3,952 3,551 2,997
Selling and Distribution Expenses (2,612) (2,246) (1,870) (1,617) (1,213)
General and Administration Expenses (409) (339) (285) (221) (266)
Operating Income 2,262 1,998 1,797 1,673 1,518
Share of Results of Associates and Joint Ventures (37) (8) (30) (25) (42)
Finance Cost, net (230) (208) (224) (157) (135)
Income Before Non Controlling Interest 1,799 1,684 1,500 1,440 1,147
Minority Interest 117 (10) 2 1 (7)
Net Income 1,916 1,674 1,502 1,441 1,140
           
BALANCE SHEET          
Net Working Capital 1,383 2,006 1,535 932 805
Property, Plant and Equipment 18,696 16,176 15,028 13,416 10,508
Biological Assets 1,228 1,070 992 901 818
Net Operating Assets 21,307 19,252 17,555 15,249 12,131
Intangible Assets - Goodwill 1,009 1,350 1,310 1,335 821
Investments 198 325 479 244 853
Net Debt 9,344 8,762 8,053 8,237 6,653
Deferred Charges and Derivatives 85 157 69 17 43
Employee Benefits 472 408 340 287 243
Deferred Tax (Net) 67 84 118 116 88
Total Equity 12,618 11,631 10,764 8,171 6,778
Net Capital Employed 22,586 21,041 19,344 16,829 13,805
Total Assets 27,371 23,949 23,171 19,519 15,656
Total Liabilities 14,753 12,318 12,407 11,348 8,879
           
CASH FLOW          
Cash Flow Generated from Operating Activities 4,932 3,199 2,586 2,736 2,261
Cash Flow Used in Investing Activities (4,409) (3,115) (3,302) (3,284) (3,237)
Cash Flow (Generated from / Used in) Financing Activities 732 (1,082) 2,115 694 1,345
Additions to Property, Plant and Equipment (4,005) (2,740) (2,799) (3,138) (3,035)
Dividend Paid 599 598 499 512 516
           
KEY INDICATORS          
Return on Sales 13.9% 13.3% 13.4% 14.6% 14.3%
EBITDA to Sales 24.2% 23.9% 24.4% 24.2% 25.6%
EBIT to Sales 16.4% 15.8% 16.0% 16.9% 19.1%
Return on Shareholders Equity 19.6% 19.0% 18.8% 20.2% 17.7%
Return on Total Equity 15.8% 15.0% 15.8% 19.3% 17.7%
Return on Net Operating Assets 11.2% 10.7% 11.0% 12.2% 14.2%
Net Debt to Equity Ratio 74.0% 75.3% 74.8% 100.8% 98.2%
Current Ratio 1.28 1.21 1.43 0.97 0.92
Revenue Growth Rate 9.4% 12.4% 13.5% 24.3% 14.7%
Dividend Proposed 690 600 600 500 518
Dividends Payout Ratio 36.0% 35.8% 39.9% 34.7% 45.5%
Shares Issued (in millions) 600 600 600 400 230
Diluted Earnings per Share (SAR)* 3.11 2.70 2.48 2.40 1.90
*Based on 600 million shares

Overall Business Development

Ten Years as a Listed Company

  1. 2005

    Almarai lists on Tadawul, Saudi Arabia‘s Stock Exchange, putting up 30.0% of the Company’s shares at SAR 750.0 million

    Trading commences on Wednesday 17th August, within the Agriculture & Food Processing Sector

  2. 2007

    Almarai acquires Western Bakeries, entering the Bakery sector for the first time

  3. 2009

    Almarai acquires Hail Agricultural Development Company (HADCO), venturing into the Poultry sector

    In the same year, Almarai partners with PepsiCo to expand its dairy and beverage business beyond the Gulf region

    Almarai is one of five food companies considered by international media as likely to be among the world’s most famous future brands

  4. 2010

    Almarai commissions the first state-of-the-art Infant Nutrition plant in the Middle East

  5. 2011

    Almarai embarks upon a vertical expansion strategy to guarantee and control its animal feed requirements, acquiring the Fondomonte farming business in Argentina

  6. 2013

    Almarai participates in the incorporation of up to 33.0% of United Farmers, which then acquires Continental Farmers Group, an owner of arable farming assets in Ukraine and Poland. In the same year, Almarai starts the acquisition of arable farmland in Arizona and California in the United States. The objective of this strategy is to guarantee the majority of its animal feed requirements from outside Saudi Arabia

    Production begins at Almarai’s new Hail Poultry facilities in Saudi Arabia

  7. 2014

    Almarai completes its strategic investment process in the Poultry segment

    IDJ rolls out a strategic investment plan to further expand in the Egyptian market

    Almarai acquires full ownership of its Infant Nutrition business, IPNC

  8. 2015

    In 2015, Almarai completed 10 years as a listed company, having consistently expanded its business

    Almarai’s expansion has resulted in six consecutive share capital increases in the past ten years, from SAR 750.0 million in 2005 to SAR 6.0 billion today

    In 2015 Almarai approved a five year capital investment programme of SAR 21.4 billion required for achieving SAR 25.6 billion in sales by the end of 2020

Striving for Excellence in Execution

Almarai is MENA’s largest food and beverage manufacturer and distributor. Through our extensive network of retailers, Almarai products are enjoyed by millions of families across the region. We have become a trusted household name through our unyielding commitment to delivering high quality products and by effectively managing an efficient global supply chain. Our sophisticated vertical integration is designed to protect that supply chain, ensuring that quality is never compromised.

The consumer is at the core of our supply chain as it is his or her specific requirements that guide the growth of our business. The following cycle clearly demonstrates Almarai’s supply chain in motion. It illustrates our focus on ‘excellence in execution’ by articulating four crucial phases. Consumer insights drive our product development process, ensuring that we create the products that families across the region seek.

Our wide-reaching supply chain and production infrastructure tracks goods from the moment shipments leave suppliers’ premises, all the way to the retail shelf. Having sourced feed and ingredients from around the world, cargo is delivered to shipping terminals across Saudi Arabia. From here it is carried to industry-leading manufacturing and processing facilities. Finished products are transported by our wholly-owned logistics fleet to distribution centres across the region, from where they are delivered to a network of more than 100,000 retailers. It is because of this attention to detail and quality that families have come to trust our brand and look for our products on the shelves.