Riyadh, Saudi Arabia-based Almarai Company has approved a new investment plan that will have the company make its first foray into the seafood category.
The food and beverage manufacturer, founded in 1977, is one of the world’s largest vertically integrated dairy companies and the Middle East region’s largest food and beverage manufacturing and distribution company. In 2021, according to the company’s annual report, it posted sales of SAR 15.8 billion (USD 4.2 billion, EUR 4 billion), with one-third of that total coming from dairy sales.
According to a release from the company, its board of directors has decided to invest SAR 252 million (USD 67.2 million, EUR 63.6 million) into the new venture.
“The plan to enter the seafood category includes establishing industrial facilities for processing seafood and high-quality products. which will be financed internally from the company’s operating cash flows after obtaining the necessary approvals from the regulatory authorities,” Almarai Company CEO Abdullah bin Nasser Al-Badr said. “The company in this new sector will expand Almarai’s product offering and contribute to the food security plan.”
The company’s entrance into the seafood business coincides with plans to invest into securing poultry birds for Almarai and the Kingdom of Saudi Arabia market – and follows up on investment plans the company announced in December 2021 that involved entering the red meat sector.
All of the investments, Al-Badr said, are part of the company’s commitment to “enhancing and supporting national food security in line with the objectives of the Kingdom’s Vision 2030.”
Almarai posted net profit of SAR 1.5 billion (USD 400 million, EUR 381.5 million) in 2021, a decline from the SAR 1.9 billion (USD 506.7 million, EUR 483.3 million) it posted in 2020. However, the company also saw an increase in its operating cash flow from SAR 4.2 billion (USD 1.1 billion, EUR 1 billion) in 2020 to SAR 4.9 billion (USD 1.3 billion, EUR 1.2 billion) in 2021.
Over half of the company’s sales are in Saudi Arabia, but it also sells products in the United Arab Emirates, Egypt, Kuwait, Oman, Jordan, Bahrain, and others.
Photo courtesy of Almarai Company
