Riyadh, March 29 - Saudi Arabia's Almarai Co. , the largest Gulf dairy firm by market value, expects 2007 profit to jump 29 percent to 600 million riyals ($160 million) on acquisitions, a newspaper said on Thursday, citing the chairman.
Almarai, 26 percent-owned by food company Savola Group , announced it would buy Western Bakeries Co. and International Bakery Services Co. in share transactions which the deal's adviser, HSBC, estimated at $194 million.
"The current market situation, increased productivity and marketing and distribution plans, as well as taking control of Western Bakeries and Global Bakery Services, will help us make profits of 600 million riyals in 2007," al-Eqtisadiah quoted Almarai Chairman Sultan bin Mohammed as saying.
Earnings per share would be more than 5.5 riyals, the paper said.
Almarai made a 2006 profit of 465.1 million riyals, up 20.5 percent from the previous year.
"The acquisition is anticipated to be one of various strategic transactions that Almarai is expected to carry out in the coming years," HSBC Saudi Arabia said in a statement.
HSBC Saudi Arabia was Almarai's financial adviser on the acquisition of the two bakeries.
Almarai was part of a consortium led by Kuwait's Mobile Telecommunications Co. (MTC), which last week won a licence to run Saudi Arabia's third mobile phone network.
Almarai said in June it would invest 4 billion riyals ($1.06 billion) during the next five years, 60 percent more than in the previous five years, on expansion plans. It did not give details at the time.