Almarai, the Gulf's largest dairy company, reported an 18.6 percent increase in second-quarter net profit on Sunday, beating analysts' forecasts, showing the benefits of stronger sales and lower commodity prices. But the company said it would continue to exercise caution due to competitive market conditions in Saudi Arabia, where a slump in oil prices has put pressure on government and consumer spending.
"Given the very competitive market conditions driven by the economic slowdown going forward, the company will continue to exercise caution on its cash-flow generation while focusing on its strategic targets and enhance overall efficiency," it said in a statement.
Almarai made a profit of 628.8 million riyals ($167.7 million) in the three months to June 30, up from 530.4 million riyals in the year-earlier period, it said in a statement.
Four analysts polled by Reuters had forecast on average that Almarai would make a quarterly profit of 530.3 million riyals.