Almarai, the Saudi Arabian dairy processor, has reported operating profits of €554m for its 2015 financial year, a 13.2% increase compared with 2014. Earnings (EBITDA) grew by 10.7% to €817m for the year, while revenues increased by 9.4% to €3.4bn.

Almarai said the improved performance was a result of reduced input costs and better cost management over the year. The group said that overall it was satisfied with the performance of the business, especially the improvement in the profitability of its poultry unit.

Almarai’s net debt increased over 2015 by almost 7% to reach €2.3bn, mainly due to capital investment in expanding production facilities on its farms, factories and distribution centres. Just last week, the group announced it had bought a 1,800 acre farm in California to produce alfalfa hay as fodder for cattle.

Almarai was founded in 1977 as a joint venture between Prince Sultan bin Mohammed bin Saud Al Kabeer and Masstock Group Holdings, an Irish farming systems company owned by Paddy and Alistair McGuckian. The group produces 1 billion litres of fresh milk every year from 75,000 dairy cows in the Saudi Arabian desert.

How Almarai produces 1 billion litres of milk from 75,000 dairy cows in the Saudi Arabian desert

Almarai reports 13.2% increase in operating profits

Saudi Arabian processor attributes improved performance to reduced input costs and better cost management.