Saudi Arabia’s Almarai to invest over SAR18bn under five-year plan

Image courtesy: Almarai/ Facebook

Almarai, the GCC region’s biggest dairy producer, said it would invest $4.8bn (SAR18bn) over the next five years to boost growth while focusing on areas including supply chain capabilities and food security.

Almarai, in a regulatory filing, said that the investment plan focuses on several strategic enablers to support its implementation including supply chain capabilities, innovation and development, sustainability, operational efficiency as well as human capital capabilities.

The dairy company said its strategy is aligned with Vision 2030, the kingdom’s blueprint for life after oil, which is aimed at diversifying the economy away from reliance on hydrocarbon revenues.

Prince Nayef bin Sultan bin Mohammed bin Saud Al Kabeer, chairman of Almarai said the five-year plan will be financed from the company’s operating cash flows.

The Riyadh-listed company has earmarked SAR7bn for poultry expansion, SAR5bn to bolster existing core product categories, and SAR4bn will be allocated to supply chain and sales capabilities for local and regional expansion plans.

Almarai is also setting aside SAR1bn to support and accelerate technology development and another SAR1bn to expand into promising new food segments.

The plan seeks to drive sustainable growth in the main operating sectors and regions in which the company is located in the GCC region, Egypt and Jordan.

With a market capitalisation of SAR58.5bn as of March 19, 2024, Almarai reported a full-year net profit of SAR2.04bn in 2023, a 16.4 per cent increase from SAR1.76 a year ago while its revenues rose by 4.6 per cent to SAR19.6bn.

Read: Saudi’s Savola to distribute 34.52% stake in Almarai to shareholders