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Almarai’s $4.8bn push to advance Saudi food security

By Pramod Kumar
Almarai will invest SAR5 blllion to expand existing categories such as bakery, dairy and juices Unsplash/DDP
Almarai will invest SAR5 blllion to expand existing categories such as bakery, dairy and juices

Almarai, the Middle East’s largest dairy farm, will spend more than SAR18 billion ($4.8 billion) under its new five-year strategic plan to achieve food security, which is part of the kingdom’s Vision 2030 goal.

“Investment in the food industry contributes to achieving food security in the kingdom and the region,” the company said in a statement published on the Saudi bourse on Monday.

The 2024-28 strategy is designed to boost growth, optimise sales and enhance financial performance across multiple segments.

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As part of the plan, SAR7 billion will be allocated to poultry expansion; SAR5 billion to support existing core product categories such as dairy, juice and bakery; SAR4 billion to develop supply chain and sales capabilities for local and regional expansion; and SAR1 billion to move into new food segments.

The company will also invest SAR1 billion to support and accelerate technology innovation.

The five-year plan will be funded from Almarai’s operational cash flows.

In January the dairy producer said net profit for the final quarter of 2023 rose four percent year on year to SAR371 million, driven by a positive performance in its core GCC markets. It rolled out multiple new products last year and plans to enter the seafood and frozen bakery businesses.

Saudi Arabia’s Public Investment Fund owns a 16 percent stake in Almarai through one of its subsidiaries.

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