Tanmiah Food Company, a market-leading provider of fresh and processed poultry and other meat products, animal feed and health products, and a foods brand franchise operator, has announced its results for the nine months ending Sept. 30. The company has reported a solid 21.5 percent year-on-year increase in revenues to SR1.5 billion ($404 million), supported by an 18 percent rise in fresh poultry sales. The EBITDA remained at the same level, reflecting a margin of 12.1 percent. The net profit attributable to owners of the company declined 21.9 percent YoY to SR49.6 million in 9M23 as a result of the continued investments in capacity and expansion of food franchise operations.
Building on the foundation laid by the MoU signed earlier this year between Desert Hills Veterinary Services Company Limited, a wholly owned subsidiary of Tanmiah, and MHP SE, more than SR200 million will be invested in farming operations with a capacity of more than 1 million parent stock expected to produce approximately 175 million hatching eggs annually, a state-of-the-art hatchery and a poultry feed mill. DHV will hold a 55 percent and MHP 45 percent stake in the joint venture, respectively. Furthermore, the recent MoU with Vibra Agroindustrial S.A. will enable Tanmiah to potentially expand its production capacity, thus reinforcing the Kingdom’s food security and self-sufficiency objectives.
Zulfiqar Hamadani, CEO of Tanmiah, said: “We concluded the first nine months of the year with a robust improvement in our top-line performance, a testament to the growth delivered through our fully integrated business model. We are proud of the sustained improvement achieved across our business segments, with fresh poultry continuing to lead this growth.
“The tremendous success of Popeyes in the Kingdom, following the launch of our food franchise vertical in 2021, continues, with revenues more than tripling during the nine months. We continue to invest in diversification initiatives for our product portfolio and have ended the period with 36 stores now in operation in the Kingdom. Our top priority at Tanmiah is to provide high-quality products within Saudi Arabia and the region through sustainable and innovative production practices while evolving our portfolio to address the changing needs of our customers.”
Ahmed bin Sharaf Osilan, executive board member and managing director of Tanmiah, said: “Tanmiah continues to focus on investing for the future through strengthening our core business segments, enhancing our capacity, diversifying our revenue streams, and establishing new strategic partnerships. By collaborating with MHP SE, a leading international food and agrotech group in Europe, and Vibra Agroindustrial S.A., a leading international poultry producer and exporter based in Brazil, we aim to boost food security and self-sufficiency in the Kingdom. This will be achieved through fostering innovation, increasing domestic employment opportunities, and implementing global best practices in food production and distribution.”
He added: “As a leading player in the region, Tanmiah remains committed to supporting the fundamental objectives and values of Saudi Vision 2030 with a continued dedication to the highest standards of quality, innovation, and sustainability.”
