Saudi’s Tanmiah sees net profit rise 19.4% riding on poultry sales

Tanmiah Food Company, a provider of fresh and processed poultry, animal feed, and food franchises, reported strong financial results for FY2023, driven by strategic expansion and a focus on sustainability.

The company’s revenue surged 21.2 per cent YoY to SAR2.09bn. Fresh poultry sales, the key contributor, rose 18 per cent to SAR1.73bn.

Earnings before interest, taxes, depreciation, and amortisation (EBITDA) climbed 18.5 per cent to SAR261.1m.

Net profit from continuing operations increased 19.4  per cent to SAR89.4m.

Zulfiqar Hamadani CEO of Tanmiah, said: “Our solid financial performance during the year was largely supported by the sustained expansion of our production capacity and our focused marketing and distribution activities, which complement our fully integrated business model, to generate tangible value for our stakeholders.

“We are indeed proud of our accomplishments on several fronts, not only financially, but also operationally and strategically. 2023 marks yet another critical milestone in Tanmiah’s successful growth journey, as we continued to tactically focus our efforts on advancing product innovation, digitalisation, sustainability, and operational excellence. These include the launch of Tanmiah-Life, a nutritious new fresh poultry line enriched with Omega-3 (the first of its kind in MENA); the prestigious ‘Product of the Year 2023’ award in the fresh chicken eco-friendly category; the ‘Innovation Award’ from Nielsen NIQ; and the renowned recognition by Forbes within the ‘Top 10 Innovative Companies in Sustainability’.

“The exceptional success of our food franchise operations, ever since the launch of this vertical in 2021, has prompted the expansion of the Popeyes franchise across the GCC, with the signing of exclusive development agreements to operate in the growing markets of Kuwait and Bahrain. Looking ahead, we are determined to transform into a global powerhouse in the halal sustainable and healthy protein market.”

Tanmiah: key highlights and targets

The company’s production capacity increased from 456,000 to 500,000 birds per day, and Popeyesfranchise stores grew to 52 across Saudi Arabia.

Strategic partnerships were also secured with MHP SE, Vibra Agroindustrial and others.

The company aims to become the leading global halal sustainable healthy protein company. It also has plans for strategic investments in primary processing, feed milling, and hatching capacities, and is committed to SAR140.8m capital expenditure for capacity expansion.