Riyadh-Mubasher: Almarai Co. said Sunday it expects SAR 0.5 billion in additional costs during 2016.
The increase in energy, fuel, electricity and water tariffs will result in an estimated additional cost of around SAR 200 million in 2016, according to the company's statement to Tadawul.
The dairy producer also forecasted additional and indirect cost of SAR 100 million from expected price increases from various local suppliers, who will be subject to the energy and water tariff increase.
In addition, a recent resolution from the Saudi government suspending production of green fodder in the kingdom within three years will likely increase input costs by SAR 200 million in 2016.
The company will continue focusing on business efficiency, cost optimisation and other initiatives to mitigate the effect of these increases.
