Saudi Arabia’s Almarai, the Gulf region’s largest dairy producer, said on Sunday that its third-quarter net profit fell 8.5 percent due to higher selling and distribution expenses, as well as lower sales in Bahrain.
The company’s Q3 net profit after zakat and tax fell to 581.2 million riyals ($154.9 million) from 635 million riyals in the same quarter last year.
Almarai also said it recorded a 14 percent drop in profit during the period from its core dairy and juice segment.
Its sales during the period rose to 3.57 billion riyals versus 3.32 billion riyals in the same period last year.
The Saudi-listed company said sales in Bahrain declined due to the implementation of value-added tax (VAT) in the country earlier this year.
Retailers in Saudi Arabia have also faced lower sales due to weaker consumer spending in response to the implementation of VAT and higher energy prices in the Kingdom.