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Annual Report 2021

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Operating Review
People & Culture
Financial Statements
Almarai

Financial
Statements

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Consolidated Statement of Financial Position

As at 31 December 2021

31 December 2021

31 December 2020

Notes

SAR ’000

SAR ’000

ASSETS

Non-Current Assets

Property, Plant and Equipment

7

20,873,448

21,112,904

Long-term Prepayments

8

579,677

606,939

Right-of-Use Assets

9

464,704

470,269

Intangible Assets and Goodwill

10

1,129,105

1,217,642

Biological Assets

11

1,469,084

1,392,079

Investments in Associate and Joint Venture

12

88,749

89,623

Equity Investment

12

-

129,734

Derivative Financial Instruments

36

2,011

142

Deferred Tax Assets

22

45,339

35,517

24,652,117

25,054,849

Current Assets

Inventories

13

4,353,596

4,705,364

Biological Assets

11

117,980

90,195

Trade Receivables, Prepayments and Other Receivables

14

1,991,205

1,936,341

Derivative Financial Instruments

36

11,597

54,047

Equity Investment

12

46,894

-

Cash and Cash Equivalents

15

580,913

503,510

7,102,185

7,289,457

TOTAL ASSETS

31,754,302

32,344,306

EQUITY AND LIABILITIES

Share Capital

16

10,000,000

10,000,000

Statutory Reserve

2,585,270

2,428,915

Treasury Shares

17

(875,157)

(906,594)

Other Reserves

18

(622,389)

(443,871)

Retained Earnings

5,031,770

4,608,458

Equity Attributable to Equity Holders of the Company

16,119,494

15,686,908

Non-Controlling Interests

19

498,919

546,771

TOTAL EQUITY

16,618,413

16,233,679

Non-Current Liabilities

Loans and Borrowings

20

7,072,240

10,088,955

Lease Liabilities

9

360,434

330,980

Employee Retirement Benefits

21

951,827

909,353

Derivative Financial Instruments

36

10,041

3,757

Deferred Tax Liabilities

22

117,302

102,139

8,511,844

11,435,184

Current Liabilities

Bank Overdrafts

32

78,395

137,512

Loans and Borrowings

20

2,631,598

1,026,013

Lease Liabilities

9

80,710

94,509

Zakat

23

429,988

371,993

Income Tax Payable

23

17,264

26,311

Trade and Other Payables

24

3,339,496

3,014,834

Derivative Financial Instruments

36

46,594

4,271

6,624,045

4,675,443

TOTAL LIABILITIES

15,135,889

16,110,627

TOTAL EQUITY AND LIABILITIES

31,754,302

32,344,306

Consolidated Statement of Profit or Loss

For the year ended 31 December 2021

31 December 2021

31 December 2020

Notes

SAR ’000

SAR ’000

Revenue

31

15,849,720

15,356,948

Cost of Sales

25

(10,790,450)

(9,821,440)

Gross Profit

5,059,270

5,535,508

Selling and Distribution Expenses

26

(2,518,851)

(2,490,479)

General and Administration Expenses

27

(428,157)

(419,790)

Other Expenses, net

28

(85,563)

(78,428)

Impairment Loss on Financial Assets

(11,845)

(24,477)

Operating Profit

2,014,854

2,522,334

Finance Cost, net

29

(346,063)

(495,881)

Share of Results of Associate

12

(941)

1,405

Profit before Zakat and Income Tax

1,667,850

2,027,858

Zakat

23

(77,080)

(72,042)

Income Tax

22,23

(11,334)

(20,260)

Profit for the year

1,579,436

1,935,556

Profit / (Loss) for the year attributable to:

Shareholders of the Company

1,563,543

1,984,361

Non-Controlling Interests

15,893

(48,805)

1,579,436

1,935,556

Earnings per Share (SAR), based on Profit for the year attributable to Shareholders of the Company

- Basic

30

1.59

2.02

- Diluted

30

1.56

1.98

Consolidated Statement of Comprehensive Income

For the year ended 31 December 2021

31 December 2021

31 December 2020

Notes

SAR ’000

SAR ’000

Profit for the year

1,579,436

1,935,556

Items that will not be reclassified to profit or loss:

Actuarial Loss on Employee Retirement Benefits

21

(4,929)

(25,459)

Change in the Fair Value of Equity Investment through FVOCI

12

(1,902)

(15,950)

Items that are or may be reclassified subsequently to profit or loss:

Settlement of Cash Flow Hedges transferred to Inventory / PPE

(82,425)

(29,950)

Foreign Currency Translation Differences

4,540

4,713

Movement in Fair Value on Cash Flow Hedges

34,364

35,324

Settlement of Cash Flow Hedges transferred to Profit or Loss

(41,127)

33,992

Other Comprehensive (Loss) / Income for the year, net of Income Tax

(91,479)

2,670

Total Comprehensive Income for the year

1,487,957

1,938,226

Total Comprehensive Income / (Loss) for the year attributable to:

Shareholders of the Company

1,471,041

1,980,597

Non-Controlling Interests

16,916

(42,371)

1,487,957

1,938,226

Consolidated Statement of Changes in Equity

For the year ended 31 December 2021

Share Capital

Statutory Reserve

Treasury Shares

Other Reserves

Retained Earnings

Equity Attributable to Equity Holders

Non-Controlling
Interests

Total
Equity

SAR ‘000

SAR ‘000

SAR ‘000

SAR ‘000

SAR ‘000

SAR ‘000

SAR ‘000

SAR ‘000

Balance at 1 January 2020

10,000,000

2,230,479

(770,740)

(450,587)

3,644,197

14,653,349

605,771

15,259,120

Profit / (Loss) for the year

-

-

-

-

1,984,361

1,984,361

(48,805)

1,935,556

Other Comprehensive Income / (Loss) for the year

-

-

-

23,829

(27,593)

(3,764)

6,434

2,670

Total Comprehensive Income / (Loss)

-

-

-

23,829

1,956,768

1,980,597

(42,371)

1,938,226

Transfer during the year

-

198,436

-

-

(198,436)

-

-

-

Directors’ Remuneration

-

-

-

-

(5,767)

(5,767)

-

(5,767)

“Transactions with Owners in their
Capacity as Owners”

Dividend Declared SAR 0.85 per Share

-

-

-

-

(850,000)

(850,000)

-

(850,000)

“Reclassification of Dividend Declared on Treasury Shares in Prior Years”

-

-

-

-

41,546

41,546

-

41,546

Share Based Payment Transactions

-

-

-

15,398

-

15,398

-

15,398

Settlement of Treasury Shares

-

-

114,607

(32,511)

20,150

102,246

-

102,246

Purchase of Treasury shares

-

-

(250,461)

-

-

(250,461)

-

(250,461)

Transactions with Non Controlling Interests

-

-

-

-

-

-

(16,629)

(16,629)

Balance at 31 December 2020

10,000,000

2,428,915

(906,594)

(443,871)

4,608,458

15,686,908

546,771

16,233,679

Balance at 1 January 2021

10,000,000

2,428,915

(906,594)

(443,871)

4,608,458

15,686,908

546,771

16,233,679

Profit for the year

-

-

-

-

1,563,543

1,563,543

15,893

1,579,436

Other Comprehensive (Loss) / Income for the year

-

-

-

(87,598)

(4,904)

(92,502)

1,023

(91,479)

Total Comprehensive (Loss) / Income

-

-

-

(87,598)

1,558,639

1,471,041

16,916

1,487,957

Transfer during the year

-

156,355

-

-

(156,355)

-

-

-

Directors’ Remuneration

-

-

-

-

(5,087)

(5,087)

-

(5,087)

“Transactions with Owners in their
Capacity as Owners”

Dividend Declared SAR 1 per Share

-

-

-

-

(981,254)

(981,254)

-

(981,254)

Share Based Payment Transactions

-

-

-

20,370

-

20,370

-

20,370

Settlement of Treasury Shares

-

-

31,437

(8,626)

6,336

29,147

-

29,147

Purchase of Additional Stake in MFI

(Refer note 1)

-

-

-

(102,664)

-

(102,664)

(47,336)

(150,000)

Transactions with Non Controlling Interests

-

-

-

-

1,033

1,033

(17,432)

(16,399)

Balance at 31 December 2021

10,000,000

2,585,270

(875,157)

(622,389)

5,031,770

16,119,494

498,919

16,618,413

Consolidated Statement of Cash Flows

For the year ended 31 December 2021

31 December 2021

31 December 2020

Notes

SAR ’000

SAR ’000

CASH FLOWS FROM OPERATING ACTIVITIES

Profit for the year

1,579,436

1,935,556

Adjustments for non-cash items:

Depreciation of Property, Plant and Equipment

7

1,608,569

1,600,408

Amortisation of Long-term Prepayments

8

27,262

20,759

Depreciation of Right-of-Use Assets

9

102,737

108,505

Amortisation of Intangible Assets

10

66,476

56,681

Depreciation of Biological Assets

11

360,241

349,178

(Gain)/Loss arising from Changes in Fair Value less Cost to Sell of Crops

(2,477)

3,800

Provision for Employee Retirement Benefits

21

117,115

119,085

Share Based Payment Expense

20,370

15,398

Finance Cost, net

29

346,063

495,881

Other Expenses, net

85,863

93,887

Share of Results of Associate

12

941

(1,405)

Zakat

23

77,080

72,042

Income Tax

22,23

11,334

20,260

4,401,010

4,890,035

Changes in Working Capital:

Inventories

2,304,663

1,148,049

Biological Assets

(1,978,985)

(1,650,036)

Trade Receivables, Prepayments and Other Receivables

(55,531)

(65,165)

Trade and Other Payables

358,167

26,522

Cash Flow Generated from / (Used in) Working Capital

628,314

(540,630)

Employee Retirement Benefits Paid

21

(79,570)

(61,590)

Zakat and Income Tax Paid

23

(34,749)

(84,763)

Net Cash Generated from Operating Activities

4,915,005

4,203,052

CASH FLOWS FROM INVESTING ACTIVITIES

Proceeds from Redemption of Time Deposit

-

585,000

Proceeds from Sale of Right Issues of Equity Investment

-

15,279

Proceeds from Sale of Equity Investment

12

80,938

-

Purchase of Manufacturing Facility

1

(219,369)

-

Dividend from Equity Investment

28

300

180

Additions to Property, Plant and Equipment

(1,087,816)

(823,691)

Proceeds from the Disposal of Property, Plant and Equipment

40,304

110,636

Additions to Intangible Assets

10

(57,175)

(144,971)

Additions to Biological Assets

(822,094)

(764,405)

Proceeds from the Disposal of Biological Assets

250,665

234,345

Net Cash Used in Investing Activities

(1,814,247)

(787,627)

CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from Loans and Borrowings

10,659,617

4,950,633

Repayment of Loans and Borrowings

(12,129,264)

(6,581,891)

Purchase of Additional Stake in a Subsidiary

1

(150,000)

-

Finance Cost Paid

(342,446)

(467,844)

Dividend Paid

(978,187)

(847,896)

Purchase of Treasury Shares

17

-

(250,461)

Settlement of Treasury Shares

29,147

102,246

Transactions with Non Controlling Interests

(6,407)

(23,889)

Principal Element of Lease Payments

(86,765)

(108,068)

Interest Element of Lease Payments

(14,369)

(17,102)

Directors' Remuneration

(5,087)

(5,767)

Net Cash Used in Financing Activities

(3,023,761)

(3,250,039)

Net Change in Cash and Cash Equivalents

76,997

165,386

Cash and Cash Equivalents at 1 January

503,510

338,435

Effect of Movements in Exchange Rates on Cash and Cash Equivalents

406

(311)

Cash and Cash Equivalents at 31 December

15

580,913

503,510