JEDDAH: Saudi Arabia’s Almarai, the region’s largest dairy company, reported a net profit increase of 10 percent to SR1.984 billion ($530 million) after Zakat and tax for the fiscal year 2020.
This was as a result of 7 percent year-on-year revenue growth, mainly due to foods, long-life dairy and poultry.
In Q4 2020, net profit after Zakat and tax grew by 8 percent year-on-year to SR335.9 million, as revenue grew by 3.1 percent year-on-year, helped by growth in Egypt, Jordan and export countries.
Pratik Khandelwal, senior analyst at Al Rajhi Capital, told Arab News that the results were “broadly in-line with our expectations and higher than our pre-COVID level forecast.”
“Almarai is one of the companies which was overall positively impacted from the COVID-19 as pantry loading during lockdown drove demand locally and in the export market,” he said.
The number of expatriates working in Saudi Arabia fell by 257,200 during the third quarter of 2020, and Khandelwal said that if this trend continued it would impact Almarai’s growth.
However, the senior analyst said that the resolution of trade between the Kingdom and Qatar could be a big positive for the company. “At the outset, it looks that Almarai should benefit but we are waiting to hear from the company how they see the Qatar market now as there would have been many other players (who) entered over the last couple of years which would pose a competitive environment. So, it’s difficult to quantify the impact now.”
Khandelwal also said that the company’s margins could be hit by the increasing price of raw materials, especially alfalfa, and this could contribute to a slowing of growth in 2021.
Saudi Arabia's Almarai 2020 net profit boosted by COVID-19 ‘pantry loading’
https://arab.news/pykze
Saudi Arabia's Almarai 2020 net profit boosted by COVID-19 ‘pantry loading’
- This was as a result of 7 percent year-on-year revenue growth, mainly due to foods, long-life dairy and poultry
- Pratik Khandelwal, senior analyst at Al Rajhi Capital, said the results were “broadly in-line with our expectations”
Silver crosses $77 mark while gold, platinum stretch record highs
- Spot silver touched an all-time high of $77.40 earlier today, marking a 167% year-to-date surge driven by supply deficits
- Spot platinum rose 9.8% to $2,437.72 per ounce, while palladium surged 14 percent to $1,927.81, its highest level in over 3 years
Silver breached the $77 mark for the first time on Friday, while gold and platinum hit record highs, buoyed by expectations of US Federal Reserve rate cuts and geopolitical tensions that fueled safe-haven demand.
Spot silver jumped 7.5% to $77.30 per ounce, as of 1:53 p.m. ET (1853 GMT), after touching an all-time high of $77.40 earlier today, marking a 167% year-to-date surge driven by supply deficits, its designation as a US critical mineral, and strong investment inflows.
Spot gold was up 1.2% at $4,531.41 per ounce, after hitting a record $4,549.71 earlier. US gold futures for February delivery settled 1.1% higher at $4,552.70.
“Expectations for further Fed easing in 2026, a weak dollar and heightened geopolitical tensions are driving volatility in thin markets. While there is some risk of profit-taking before the year-end, the trend remains strong,” said Peter Grant, vice president and senior metals strategist at Zaner Metals.
Markets are anticipating two rate cuts in 2026, with the first likely around mid-year amid speculation that US President Donald Trump could name a dovish Fed chair, reinforcing expectations for a more accommodative monetary stance.
The US dollar index was on track for a weekly decline, enhancing the appeal of dollar-priced gold for overseas buyers.
On the geopolitical front, the US carried out airstrikes against Daesh militants in northwest Nigeria, Trump said on Thursday.
“$80 in silver is within reach by year-end. For gold, the next objective is $4,686.61, with $5,000 likely in the first half of next year,” Grant added.
Gold remains poised for its strongest annual gain since 1979, underpinned by Fed policy easing, central bank purchases, ETF inflows, and ongoing de-dollarization trends.
On the physical demand side, gold discounts in India widened to their highest in more than six months this week as a relentless price rally curbed retail buying, while discounts in China narrowed sharply from last week’s five-year highs.
Elsewhere, spot platinum rose 9.8% to $2,437.72 per ounce, having earlier hit a record high of $2,454.12 while palladium surged 14% to $1,927.81, its highest level in more than three years.
All precious metals logged weekly gains, with platinum recording its strongest weekly rise on record.
