Almarai Q2 earnings call: poultry ahead of schedule, reiterate Buy

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Almarai Q2 earnings call: poultry ahead of schedule, reiterate Buy

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Almarai

Q2 earnings call: poultry ahead of

schedule, reiterate Buy

Reiterate Rating: BUY | PO: 68.00 SAR | Price: 46.98 SAR

What happened? 08 July 2026 Corrected

Almarai’s Q2 2026 earnings call contextualized its 0.8%/4.0% revenue beat and Equity

3.5%/8.5% EPS beat vs. BofAe/consensus. The company attributed its 11% Y-o-Y

revenue growth to (i) a 20% expansion in poultry revenue, driven by increasing

Key Changesproduction to 88mm birds vs. 73mm in Q2 2025; (ii) 31% hard currency growth in Egypt,

with long-life dairy as the standout; and (iii) SAR110mm contribution from the water (SAR) Previous Current

business, which was not in the prior-year numbers. Nevertheless, operating profit was Price Obj. 67.30 68.00

flat Y-o-Y as the regional conflict elevated transportation and energy costs. 2026E EPS 2.61 2.56

2027E EPS 2.92 2.84

2028E EPS 3.26 3.10How were our three key questions answered?

we noted three priority questions in our preview yesterday (see note, Q2 2026 earnings 2026E EBITDA (m) 6,070.1 5,985.3

call). On (i) poultry production, good news: Almarai’s run-rate capacity of 352mm birds 2027E EBITDA (m) 6,789.7 6,811.3

pa was 7% ahead of our expectations. On (ii) cost inflation pass-through, less positive: 2028E EBITDA (m) 7,328.1 7,282.5

Almarai sees supply chain disruptions as a persistent challenge, with costs such as war

risk insurance premiums on cargo and storage fees at the more-heavily-burdened West Mohsen Ameeri >>

Research Analyst

Coast ports enduring. On (iii) cash, leverage, and distributions, it sees profit growth Merrill Lynch KSA Company

bringing its net leverage down from a seasonally high 2.7x down to 2.5x by year-end. +966 112 993 741 mohsen.ameeri@bofa.com