Tanmiah Food’s 2023 profit falls 59% on pricing pressure

Saudi-listed Tanmiah Food Company’s net profit for 2023 fell 59 percent year on year to SAR75.9 million ($20.24 million) on lower subsidy payout, increasing pricing pressure, and continued expansion of fresh poultry and Popeyes stores.

Revenues rose 21 percent to SAR2.09 billion last year, primarily due to increased sales volumes, enhanced geographical coverage and channel expansion.

Fresh poultry sales, making 83 percent of the company’s revenues, increased 18 percent year on year to SAR1.7 billion. Food franchise operator revenues increased nearly three-fold to SAR88.2 million annually.

“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,” said CEO Zulfiqar Hamadani.

Capex increased to SAR222.5 million in 2023 from SAR160.5 million in 2022. The planned capital expenditure in the next five years will focus on ramping up primary processing, feed milling and hatching capacities, in addition to expanding food franchise operations.

The company’s Q3 2023 net profit fell 79 percent year on year to SAR26.4 million, but revenue jumped 20 percent annually to SAR576.2 million.