Skip to content Skip to Search
Skip navigation

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

By Pramod Kumar
Chicken, Animal, Poultry Unsplash/Artem Beliaikin
Fresh poultry sales, making 83% of the company’s revenues, increased 18% year on year to SAR1.72 billion

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.

Latest articles

Thani Al Zeyoudi, Minister of State for Foreign Trade of the United Arab Emirates, (UAE) speaks during the Skybridge Capital SALT New York 2021 conference in New York City, U.S., September 15, 2021. REUTERS/Brendan McDermid Dr Thani bin Ahmed Al Zeyoudi, the UAE’s minister of state for foreign trade, said 'Malaysia offers substantial opportunity for our exporters, industrialists and business leaders' UAE Malaysia Cepa

UAE and Malaysia sign Cepa to increase bilateral trade

The UAE and Malaysia have signed a free trade deal, bringing the number of deals the Gulf state has agreed with foreign governments to 12. The comprehensive economic partnership agreement (Cepa) will seek to eliminate or reduce tariffs, lower trade barriers, increase private sector collaboration and create new investment opportunities, the two countries said in a […]

Modern buildings in the city center of Riyadh, Saudi Arabia

Riyadh leads Saudi Arabia’s hot property market

Strong population and employment growth in Riyadh is driving a surge in real estate transactions as new properties cannot come on the market fast enough. A dramatic rise in the number of deals in the 12 months to the end of June was also visible in Jeddah and Dammam, according to a report this week […]

Adnoc LNG

Adnoc drops plan to upgrade UAE’s only LNG facility

An upgrade of the Das Island liquefied natural gas plant has been cancelled by Adnoc Gas, as it shifts priorities towards greenfield developments. “We have a funnel of exciting opportunities in which we can invest while at the same time exercising capital discipline,” Adnoc Gas said. Das Island’s liquefaction and export terminal, the only LNG […]

The new technology can help with tracking projects as contractors often have no idea how many workers are on site at one time and workers are frequently unsupervised

Saudi startup’s smart helmets upping safety on building sites

When Hassan AlBalawi first proposed a smart helmet that would track all employee movements on building sites, construction companies could not see the point.  “We were focusing on this problem of how to get technology into the construction field, measuring the drowsiness of construction workers. But it turned out the construction companies didn’t know or care,” […]