Saudi Arabia’s Almarai, the Gulf’s largest dairy company, reported on Sunday a 14.7% drop in fourth quarter profit, citing subsidy reductions, imported-feed costs and inflation for farm and dairy commodities, reported Reuters.
Almarai made a net profit of 286.5 million riyals ($76.38 million) for the three months through 31 December, down from 335.9 million riyals in the same period a year earlier ($1 = 3.7509 riyals).
The company said it was hurt by the lack of subsidies for corn and soy last year. Results were also affected by alfalfa feed consumption moving to a 100%-import basis. General cost rises for farm and dairy commodities also hit its margins, mostly in the second half of the year, Almarai said.