Almarai reported consolidated earnings results for the fourth quarter and year ended December 31, 2016. For the quarter, the company reported a 1% increase in net profit and made a profit of SAR 488.5 million, up from SAR 483.7 million in the year-earlier period. Sales increased by 0.7% to SAR 3,610.4 million, compared to SAR 3,584.2 million in the same quarter of 2015. Operating income amounted to SAR 661.5 million, an increase of 15.5% as compared to the corresponding quarter of the previous year SAR 572.5 million. Earnings before interest, taxes and zakat, depreciation and amortization (EBITDA) reached SAR 973.2 million, an increase of 15.9% as compared to SAR 840.0 million in the corresponding quarter of last year. The increase in net income for the fourth quarter of 1.0% as compared to the corresponding quarter of the previous year is due to: increase in sales of 0.7%, as a result of continuous growth in the bakery by 6.6%, Poultry by 16.0% and a decrease in Dairy & Juice by 2.4% due to the adverse market conditions. Cost of sales decreased by 4.3% due to lower in-puts costs, better cost management and enhanced production efficiencies despite increases in fuel and electricity costs, which lead to an increase in gross profit of 9.2% reflected in the net income improvement for the quarter. For the year, the company’s sales increased by 6.6% to SAR 14,698.7 million as compared to SAR 13,794.6 million in the corresponding year. Operating income amounted to SAR 2,541.9 million, an increase of 12.4% as compared to the corresponding year SAR 2,262.1 million. Net income amounted to SAR 2,080.5 million, an increase of 8.6% as compared to the corresponding year SAR 1,915.7 million. Diluted earnings per share (EPS) based on the net income attributable to shareholders reached SAR 2.52 as compared to SAR 2.33 for the year ended 31 December 2015. EBITDA was SAR 3,718.1 million, which is an increase of 11.5% as compared to SAR 3,334.9 million for the corresponding year. Cash flow generated from operating activities reached SAR 4,393.6 million, a decrease of 10.9% as compared to SAR 4,931.9 million in the corresponding year. Net debt amounted to SAR 10,889.4 million as compared to SAR 9,343.7 million on 31 December 2015, an increase of 16.5%.