Published 22 Aug,2021 via Arab News - Economy DUBAI - Saudi poultry giant Tanmiah is expanding its fresh chicken business in line with the Kingdom’s food security goals, as well as a growing regional demand.
Saudi Arabia wants 80 percent of its poultry needs to come from local producers, and the company said it plans to support this by investing in its local assets and operations.
“Planned capital expenditure in the next five years to increase feed milling, primary processing and further processing capacities is intended to allow the Company to capture new and emerging growth opportunities,” Tanmiah said in a statement.
These plans work against the backdrop of a growing population and consumer spending in the Kingdom, where the population has grown at a rate of 2.4 percent since 2014.
The company is aiming to increase its investment in capacity, production, and distribution across the Kingdom and the wider region to meet these demands.
Recently listed on the Saudi stock exchange, Tanmiah’s revenue grew by 27.6 percent to SR734.9 million ($196 million) in the first half of 2021, while the increase in global grain prices affected the company’s net income which fell 16.2 percent to SR22.2 million.
But the company’s Chief Executive Officer Zulfiqar Hamadani is optimistic about Tamniah’s “ambitious expansion,” particularly because of its recent initial public offering.
“Combined with a planned rapid ramp-up in spending on production, distribution and brand assets, our integrated and efficient business model will enable us to increase capacity to take full advantage of the growing market demand in our defensive sector,” he said.
The revenue increase is a result of the company’s growth in its fresh poultry and processing segments, the company said.
With the growing regional consciousness about companies’ social responsibilities, Tanmiah reiterated its efforts on solid waste and wastewater recycling.
It has signed an agreement with the King Abdul Aziz City for Science and Technology to work together on innovative and sustainable solutions for food production.
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