Financial Performance Evaluation of Almarai Company

Running Head: Finance
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Project Report: Finance

Finance
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Contents
Introduction.......................................................................................................................3
Company overview...........................................................................................................3
Financial position..............................................................................................................4
Market share.....................................................................................................................8
Capital structure................................................................................................................8
Debt to equity ratio.....................................................................................................10
Dividend analysis............................................................................................................11
Conclusion......................................................................................................................12
References.......................................................................................................................13
Appendix.........................................................................................................................15

Finance
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Introduction:
The report focuses on the financial performance of a Saudi Arabia company named by
Almarai. The financial evaluation is a process which is used by the companies, financial
analyst and the investors of the company to recognize the position of the business, projects,
budgets and other financial related activities of the business (Rabin, 2013). An organization
could be evaluated through various bases such as through evaluation on the financial ratios of
the company, capital structure and debt payout policies of the company etc. all of these
activities explain about the financial risk, liquidity risk, long term solvency position, cost
management etc of the business.
In the report, the financial study has been conducted on Almarai. In order to identify
the financial position of the company, the capital structure, financial position and the debt
payment policies of the business have been evaluated in order to identify the position of the
company in the industry and investment position of the business. the corporate governance
policy, risk management level, audit committee, mission of the company in 2025 has been
studied in the report.
Company overview:
Almarai is Known as the largest company in Saudi Arabia dairy industry because of
higher market share of the business. The main operation of the company includes dairy farms
and processes food as well as it also do marketing of dairy products and fruit juices in the
Saudi Arabia market. Almarai name stands for ‘green pastures’ in Arabic. Almarai has an
untiring commitment to the quality services and the products. The quality product and
services of the company has helped the company to manage the financial performance and
the market share. Their main focus of the company is on its consumers. the company is
operating across the gulf region. Around 40,000 employees are working with the company
who are offering servicing at 50,000 retail outlets with a turnover that exceeded US $13,396
million in 2017 (Home, 2018). The main competitors of the company in Saudi Arabia market
is The Saudi Dairy and Foodstuff Co which offering the similar products in the dairy industry
(Gulf base, 2018).

Finance
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Figure 1: Stock price
(Bloomberg, 2018)
Mission 2025:
The mission of the company by 2025 is to be the market leader at the global level and
improve the profitability turnover of the business at great extent. Mission and vision (2018)
expresses that the main mission of the business is to offer the quality and nutrition beverage
and food to consumers in order to enrich their daily lives.
Audit committee:
The audit committee report of the company has added that the company is following
proper AASB rules in order to offer the proper and transparent information to the
stakeholders of the business.
Corporate governance policies:
The corporate governance policy of the company is to focus on the environment and
improve the lifestyle level of the society (Annual report, 2017). The corporate responsibility
(2018) explains that currently company is supporting the excellence in kingdom, education
and developing the local talent.
Funding policy and capital addition:
The company has improved the equity level in the year of 2017 whereas the debt level
of the company was same; it has reduced the financial gearing position of the company.
Financial position: