• Revenue by Region: For Fourth quarter of 2020 as compared to the corresponding quarter of last year, the Revenue decreased in Saudi Arabia and GCC countries by 1.0% and 3.1% respectively, and the revenue increased in Other Countries by 41.5%. However, for the year ended 31st December 2020 as compared to the last year, Revenue increased in Saudi Arabia, in other GCC and Other Countries by 5.6%, 1.1% and 29.2% respectively.
• EBITDA: For Fourth quarter 2020 Earnings before Interest, Taxes and Zakat, Depreciation and Amortization (EBITDA) reached SAR 1,654.0 million, an increase of 3.0% as compared to the corresponding quarter of last year (SAR 1,605.7 million). For the year ended 31st December 2020 Earnings before Interest, Taxes and Zakat, Depreciation and Amortization (EBITDA) reached SAR 4,013.4 million, a decrease of 0.1% as compared to the last year (SAR 4,017.9 million).
• Profit Margins: For Fourth quarter of 2020, The Gross Profit, Operating Profit and Consolidated Profit Attributable to Shareholders of the Company represent 32.3%, 13.1%, and 8.8% of Revenue as compared to the corresponding quarter of last year of 34.9%, 13.5%, and 8.4%, respectively. For the year ended 31st December 2020, it represents 36.0%, 16.4%, and 12.9% of Revenue as compared to last year of 37.4%, 17.2%, and 12.6% respectively.
• A summary of the Statement of Cash Flows for the year ended 31st December 2020 is as follows:
- The Cash Generated from Operating Activities (OCF) reached SAR 4,203.1 million a decrease of 11.2%, as compared to last year (SAR 4,732.1 million). This reduction of nearly SAR 529 million was driven by higher inventory from SAR 4.2 billion to SAR 4.7 billion, mainly due to strategic purchases of raw material inventory in view of COVID-19 and timing difference of receipt of farming related non-alfalfa material. The OCF represents 27.4% of Revenue as compared to 33.0% for the last year.
- The Cash used in Investing Activities reached SAR 787.6 million as compared to the last year (SAR 2,944.1 million), a decrease of 73.2%. Investing Activities represent 5.1% of revenue as compared to 20.5% for the last year. This reduction was driven solely by reduction in capital expenditure going forward due to available capacity.
- The free cash flow (FCF) reached SAR 2,830.4 million as compared to the last year (SAR 2,373.0 million), an increase of 19.3%. The FCF represent 18.4% of revenue as compared to 16.5% for the last year. This was driven by lower capital expenditure partly offset by working capital expansion, mainly in inventory.
The current market conditions in Q4 are pointing towards a consolidation phase. Almarai continues with a focused business strategy on top line growth driven by channel expansion, new product development, pricing rationalization and new geographies while also focusing on tight cost control. The positive free cash flow in 2020 is expected to continue its momentum in the year ahead and we expect to further strengthen our balance sheet with renewed focus on profitability and working capital management.
The Consolidated Financial statements for the year ended 31st December 2020 will be available through the following link on Almarai Website, and Almarai IR App.
Conference call for analysts and investors will be held on 26th January 2021 at 4:00 p.m. KSA time.
The presentation accompanying the conference call will be available on Almarai website within the Investors section under Earning Presentations at: