Almarai profit hit by higher energy and shipping costs

Saudi dairy and food producer Almarai reported a fall in net profit in the second quarter, driven by cost inflation.

Net earnings fell by 2 percent year on year to SAR636 million ($170 million), despite revenues rising by 11 percent to SAR5.9 billion.

Higher feed and shipping costs, as well as increased distribution costs, were fuelled by rising energy expenses on the back of the US-Iran conflict.

Topline growth was driven by higher poultry sales and an improved revenue mix from the dairy segment, the company said in a statement to the Saudi bourse.

Net profit for the first half of 2026 edged down 1 percent year on year to SAR1.4 billion, while revenue rose 9 percent annually to SAR12 billion.

Quarter-on-quarter net profit dropped 13 percent, while revenues fell nearly 5 percent.

Almarai said it is closely monitoring the regional situation and will continue to effectively manage its supply chain and operational risks by leveraging inventory cover.

Almarai shares closed 3.3 percent lower at SAR45.62 on the Saudi bourse on Sunday, but are up almost 6 percent so far this year.

Sultan Holding Company holds a 23.7 percent stake in Almarai.

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