• Revenue by Region: For Second quarter of 2020 as compared to the corresponding quarter of last year, the Revenue growth in Saudi Arabia, in other GCC and Other Countries by 10.8%, -2.6% and 17.2% respectively. For the six months period ended 30th June 2020 as compared to the corresponding period of last year, the Revenue growth in Saudi Arabia, other GCC and other countries by 9.5%, 1.6% and 18.0% respectively.
• EBITDA: For Second quarter 2020 Earnings before Interest, Taxes and Zakat, Depreciation and Amortization (EBITDA) reached SAR 1,136.7 million, an increase of 3.2% as compared to the corresponding quarter of last year (SAR 1,101.4 million). For the six months period ended 30th June 2020 Earnings Before Interest, Taxes and Zakat, Depreciation and Amortization (EBITDA) reached SAR 2,035.9 million, an increase of 3.9% as compared to the corresponding period of last year (SAR 1,959.0 million).
• Profit Margins: For Second quarter of 2020, The Gross Profit, Operating Profit and Consolidated Profit Attributable to Shareholders of the Company are representing 37.6%, 18.6%, and 15.8% of Revenue as compared to the corresponding quarter of last year of 38.9%, 19.7%, and 15.5%, respectively. For the six months period ended 30th June 2020, it represents 36.3%, 16.6%, and 13.4% of Revenue as compared to the corresponding period of last year of 37.1%, 17.4%, and 13.0%, respectively.
• A summary of the Statement of Cash Flows for the Six Months ended 30th June 2020 is as follows:
- The Cash Generated from Operating Activities (OCF) reached SAR 1,857.4 million, a decrease of 5.1%, as compared to last year (SAR 1,956.9 million). This was mainly driven by higher working capital movement due to higher trade receivables from expansion in modern trade. The OCF represents 24.2% of Revenue as compared to 27.7% for the last year.
- The Cash used in Investing Activities reached SAR 699.8 million as compared to the same period last year (SAR 1,181.8 million), a decrease of 40.7%. Investing Activities represent 9.1% of revenue as compared to 16.7% for the last year. Investing cashflow reduce significantly as capex program was limited to mainly replacement and existing capex pipeline.
- The free cash flow (FCF) reached SAR 1,138.7 million as compared to the last year (SAR 775.1million), an increase of 46.9%. The FCF represent 14.8% of revenue as compared to 11.0% for the last year. This was driven by expansion in our OCF and commitment to reduced capital expenditure.
The first half year revenue growth is driven by growth in all product segments except juice. Whilst volume growth in gulf region remains weaker due to lower tourism and competitive pressures, KSA, Jordan, Egypt and Kuwait demonstrated significant growth. The strong top line growth resulted in profit growth in double digits, despite additional costs incurred to manage COVID-19 impact. In addition, the continual reduction in debt balance continue to provide additional savings via lower funding costs.
Despite this resounding performance in first half 2020, the next half represents significant challenges for Almarai due to introduction of VAT, additional custom duties and expected general decline in population. Almarai is developing multiple scenarios to manage these impacts and will roll out additional plans during the year to ensure the supply of quality products to its customers, whilst maintaining a healthy return for its shareholders.
The Consolidated Financial statements for the Six Months ended 30th June 2020 will be available through the following link on Almarai Website, and Almarai IR App.
Conference call for analysts and investors will be on 7th July 2020 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: