• Revenue by Region: For Fourth quarter of 2019 as compared to the corresponding quarter of last year, the Revenue increased in Saudi Arabia, in other GCC and Other Countries by 9.2%, 3.5% and 27.4% respectively. For the Year ended in 31st December 2019 as compared to the last year, Revenue increased in Saudi Arabia, in other GCC and Other Countries by 6.1%, 2.4% and 12.6% respectively.
• EBITDA: For Fourth quarter 2019 Earnings before Interest, Taxes and Zakat, Depreciation and Amortization (EBITDA) reached SAR 917.8 million, an increase of 7.1% as compared to the corresponding quarter of last year (SAR 857.3 million). For the Year ended in 31st December 2019 Earnings before Interest, Taxes and Zakat, Depreciation and Amortization (EBITDA) reached SAR 4,013.9 million, a decrease of 0.2 % as compared to the last year (SAR 4,023.5 million).
• Profit Margins: For Fourth quarter of 2019, The Gross Profit, Operating Profit and Consolidated Profit Attributable to Shareholders of the Company are representing 34.9 %, 13.5 %, and 8.4% of Revenue as compared to the corresponding quarter of last year of 37.4%, 14.7%, and 11.0%, respectively. For the Year ended in 31st December 2019, it represents 37.4%, 17.2%, and 12.6% of Revenue as compared to last year of 39.3%, 18.6%, and 14.8% respectively.
• A summary of the Statement of Cash Flows for the Twelve Months ended 31st December 2019 is as follows:
- The Cash Generated from Operating Activities (OCF) reached SAR 4,732.0 million an increase of 29.0%, as compared to last year (SAR 3,668.8 million). This was driven by better working capital management relative to last year when inventory increase due to closure of arable operations in KSA absorbed nearly SAR 1.0 billion in working capital. The OCF represents 33.0% of Revenue as compared to 27.1 % for the last year.
- The Cash used in Investing Activities reached SAR 2,944.0 million as compared to the same last year (SAR 2,349.7 million), an increase of 25.3 %. Investing Activities represent 20.5% of revenue as compared to 17.3% for the last year. This mainly represent SAR 0.6 billion investment in term deposits, acquisition of an associate and subsidiary amounting to SAR 0.2 billion and capex spend of SAR 1.6 billion, a continued reduction from last year capex spend of SAR 1.9 billion.
- The free cash flow (FCF) reached SAR 1,788.0 million as compared to the last year (SAR 1,319.1 million), an increase of 35.6%. The FCF represent 12.5% of revenue as compared to 9.7% for the last year. This was driven by expansion in our OCF and commitment to reduced capital expenditure. Adjusting for term deposit, the FCF nearly doubled and we expect this positive trend to continue in the year 2020.
Barring any major unforeseen events, we expect the positive trend of the top line witnessed in late 2019 to continue in the short term. With a focused business strategy on top line growth driven by channel expansion, new product development and pricing rationalization, coupled with managed cost control and higher free cash flow, we expect the firm yet difficult steps taken in 2019 to bring positive impact during 2020 both in terms of sales and profit growth.
The Consolidated Financial statements for the Twelve Months ended 31st December 2019 will be available through the following link on Almarai Website, and Almarai IR App.
Conference call for analysts and investors will be on 21th January 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: