Saudi dairy giant Almarai sees profit slump 22.5% on pandemic, VAT impact

DUBAI: Saudi Arabia’s Almarai recorded a 22.5 percent decline in profit in the first nine months of the year, compared to the same period last year, as the pandemic and value-added tax (VAT) weigh in on revenues. 

Its net profit stood at SR1.28 billion during the said period, compared to SR1.65 billion last year, the dairy giant said in a Tadawul filing. 

The decline was mostly due to the base year effect of COVID-19, it added, as well as VAT-related changes in purchases. 

Gross profit was down 10.1 percent due to adjustments made because of subsidy reduction.