Almarai, the Saudi Arabian fully integrated dairy processor, has reported operating profits of €459m for the 2014 financial year – an 8.5% increase on the previous year. Revenue increased by 12.4% to €2.97bn while net profit rose by 11.5% to €394m.

The growth was driven in poultry, dairy, and juice and bakery, where sales rose by 29.1%, 12.1% and 6.1%, respectively. Net profits increased for all business segments except poultry, whose loss increased by 17.3%. EBITDA for 2014 was 23.5% of sales compared with 24.4% in 2013.

Operating margins were back slightly to 15.5%, while earnings per share increased to €0.63 from €0.58 in 2013. Net debt increased by 8.8% and at year end stood at €2.1bn. Net debt stands at 75.3% of the total equity compared to 74.8% in 2013.

Over the past 12 months, Almarai’s share price has strengthened by over 30% to €19.26.

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 one billion litres of fresh milk every year from 75,000 dairy cows in the Saudi Arabian desert.

Last year, Almarai paid $47.5m (€40m) purchasing 9,800 acres of land in Arizona. This transaction forms part of Almarai’s continuous efforts to improve and secure its supply of the highest quality alfalfa hay from outside Saudi Arabia to support its dairy business. Much of Almarai’s feedstock is shipped almost 8,000 miles from South America. In 2011, it bought Argentinian farm operator Fondomonte SA for 312m riyal (€75m).