A brand new long-term credit score facility amounting to 450 million riyal (SAR; US$120 million) has been secured from Banque Saudi Fransi, stories Tanmiah Meals Firm. This can be used to help the strategic enlargement plans of the Saudi Arabia-based poultry firm.
Assured by promissory notice, the length of the settlement is seven years from the primary draw-down.
Tanmiah had beforehand introduced its intention to develop its totally built-in and environment friendly enterprise mannequin inside the Kingdom of Saudi Arabia, in addition to regionally and globally. Among the many favorable market tendencies it recognized within the newest monetary report was annual development of extra than 10% within the world halal meals market over the interval 2023-2028. Tanmiah has additionally been is exploring alternatives in additional downward integration within the meals provide chain.
Moreover, the agency stories that the Saudi authorities has been supporting a variety of initiatives that goal to extend home meals manufacturing, and increase meals safety.
Poultry, meals franchise gross sales drive Tanmiah’s income
For the newest quarter for which the agency has revealed outcomes, income was greater than 13% greater year-on-year at SAR533.7 million. This was for the three months earlier than September 30, 2023. Nonetheless, gross revenue was 3% decrease than within the comparative interval at SAR117.4 million. Working revenue (expressed as Earnings Earlier than Curiosity, Taxes, Depreciation and Amortization; EBITDA) tumbled by greater than 17% to SAR65.0 million.
For the nine-month interval to the identical date, nevertheless, Tanmiah’s income and gross revenue have been up 21.5% and 14.1%, respectively, year-on-year. In distinction, EBITDA was marginally decrease than 12 months beforehand.
Commenting on these outcomes, CEO Zulfiqar Hamadani mentioned that contemporary poultry gross sales and a meals franchise vertical enterprise had led this development.
For the nine-month reporting interval, contemporary poultry gross sales accounted for 83% of the corporate’s complete income. It has elevated 18% year-on-year to virtually SAR1.264 billion. Gross sales quantity had additionally elevated from 456,000 birds per day as of December 31, 2022 to 500,000 by September 30, 2023.
“The great success of Popeyes within the Kingdom of Saudi Arabia, following the launch of our meals franchise vertical in 2021, continues, with revenues extra than tripling in the course of the 9 months,” Hamadani mentioned.
By the top of the reporting interval, Tanmiah was working 36 Popeyes shops throughout the nation.
Robust demand for animal well being merchandise and gear drove development for the group’s Animal Feed and Well being enterprise, the firm said. For the primary 9 months of final yr, income was up 20% year-on-year at SAR192.6 million.
Managing director and govt board member, Ahmed bin Sharf Osilan, summed up the corporate’s future aims.
“Tanmiah continues to concentrate on investing for the longer term via strengthening our core enterprise segments, enhancing our capability, diversifying our income streams, and establishing new strategic partnerships,” he mentioned.
Extra on Tanmiah Meals Firm
With annual manufacturing of round 122 million chickens, Tanmiah Meals Group is definitely among the many 10 largest poultry firms within the Center East, in response to the WATTPoultry.com’s High Poultry Firms survey.
Since its basis in 1962, Tanmiah Meals Firm has grown to turn into one of many area’s largest producers of contemporary and processed poultry, in addition to different processed meat merchandise, in response to the agency’s website. A vertically built-in firm, it additionally provides livestock and poultry feeds, and animal well being merchandise.
As of September, the group operated 120 farms, six hatcheries, two feed mills, and 4 slaughterhouses. It has manufacturing, processing, and distribution services not solely in Saudi Arabia, but in addition the United Arab Emirates (UAE), Bahrain, Oman, Jordan, and Kuwait.
Gross sales channels are via wholesalers, retailers, meals service, and on-line on to customers.
In September of 2023, it was introduced that Tanmiah had agreed with MHP of Ukraine to strengthen an present poultry manufacturing partnership. Its goals have been additional to strengthen meals safety in Saudi Arabia, and to spice up self-sufficiency in hen manufacturing.
Two months later, Tanmiah Meals Firm signed a brand new settlement with PLK Europe that can see restaurant chain Popeyes increasing into Bahrain and Kuwait.
