SAUDI: Investment in PepsiCo JV boost Almarai profits
Almarai took majority stake in PepsiCo dairy venture in March
Saudi food group Almarai has reported an increase in third-quarter profits as growth across the business and its acquisition of a majority stake in a dairy venture with PepsiCo boosted results.
Almarai booked a 4.7% increase in net profit to SAR450m (US$120m) for the three months to the end of September. Operating profit came in 6.6% higher at SAR508.6m.
The improved profits were on the back of a 27% leap in turnover to SAR2.67bn. Almarai pointed to a "strong performance" across its divisions but highlighted bakery and poultry.
It also cited its increased investment in IDJ, its dairy and juice venture with PepsiCo. In March, Almarai upped its stake in the venture from 48% to 52%.
IDJ was set up in 2009 to target countries in the Middle East, Africa and south-east Asia, excluding the Gulf Cooperation Council states. Its main markets are Egypt and Jordan, from where it exports to other countries.
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