Almarai Saudi Company intends to spend 405 million riyals ($108 million) to increase its production of fresh baked goods and enter the frozen baked goods sector in the Kingdom of Saudi Arabia and other markets.
The company listed on the main Saudi stock market, Tadawul, said in a disclosure on the market’s website today that its board of directors approved the investment plan in this regard, which will allow it to provide a full range of fresh and frozen bakery products to consumers, in addition to broader coverage of the food services sector. She added that this expansion will contribute further to supporting food security in line with the goals of the Kingdom’s Vision 2030.
Financing this investment plan, which is expected to be completed within two years, will be through internal cash flows, according to the company’s disclosure.
Last July, Almarai issued dollar-denominated sukuks worth $750 million for a period of 10 years, with an annual return of 5.23% and paid semi-annually. The company's total long-term debt, according to its detailed financial statements for the second quarter of this year, amounts to 6.5 billion riyals, the largest portion of which is Islamic banking facilities.
Almarai issues sukuks worth $750 million with a return of 5.23%
Almarai’s profits during the first half of this year amounted to 1.2 billion riyals, an increase of 27% over the profits of the corresponding period last year, according to the latest announced data.
During the years 2021 and 2022, Almarai announced expansion plans, which included expansion in the poultry sector through an investment of 6.6 billion riyals, and an initial investment of 252 million riyals to enter the fish and marine products sector, in addition to an initial investment of 250 million riyals to enter the red meat sector, as well as Investment in broiler breeding facilities to support food security in Saudi Arabia was allocated 153 million riyals.
