Saudi’s Almarai has formally announced its intention to buy UAE food producer NFPC, potentially worth up to US$1.5bn, as analysts remain cautious on the firm’s outlook after mixed Q1 results.
Almarai announced a 14.4% increase in annual profits, to US$510m, but said it expected costs to rise US$133m in 2016 due to increased costs, as it bought US land worth US$31.8m.
Saudi food giant Almarai may buy a US$1.5bn stake in the UAE’s National Food Products Company (NFPC), as the Saudi firm ups its dividend payment and plans to boost its equity.
Saudi food giants Savola and Almarai reported very different Q3 results, with Savola’s profit dropping 47% to US$99m, and Almarai’s up 10.3% at US$158.7m, but both missing analyst’s forecasts.
Saudi food producer Almarai announced a 22.4% rise in profits to reach US$141m for its second quarter, with increased sales, but also a US$87.5m write-down of its subsidiaries.
Saudi-based company Almarai has partnered with Oystar Gasti in a deal that will help fulfill continuing consumer demand for high quality dairy products in the Gulf.
