Almarai (ALMARAI AB) Saudi Arabia
Consumer Staples
Saudi market volatility has surged in 2025, with the TASI down 11% YTD amid rising geopolitical concerns. Almarai shares have fallen 10.8% YTD despite strong Q1 results, with net profit up 5.6% Y/Y to SAR731m and revenue rising 5.7% to SAR5.77bn. The company continues to pursue growth, recently acquiring Pure Beverages for SAR1.04bn to strengthen its drinks portfolio and tap high-growth markets. AlphaMena sees 25% upside based on their DCF valuation. With resilient fundamentals, strong brand equity and long-term demand growth in Saudi Arabia and Egypt, the recent stock correction presents an attractive entry point. Almarai now trades at a 17-year low EV/EBITDA of 10.8x.
Edition: 214
- 27 June, 2025
Almarai (ALMARAI AB) Saudi Arabia
Consumer Staples
Most of the GCC equity markets have fallen for the third straight month as the Israel-Gaza war rages on. Almarai, the Gulf’s largest dairy company, is no exception, having seen its share price drop ~20% since the end of Jul. However, this poor performance should not arouse doubts about its solid fundamentals. Almarai recorded a 19.5% y/y increase in its 9M net profits after Zakat and tax to SAR1.678bn with revenues up 5.6% to SAR14.656bn. AlphaMena points to the resilience of the group’s business model thanks to its strong brand image, portfolio optimisation and growing demand. They expect a 6.49% CAGR of revenues and an EBITDA margin average of 29.3% (2023-2025).
Edition: 173
- 10 November, 2023