Almarai approves SR21bn capex plan for 2016 20
(MENAFN- Arab News) JEDDAH: The board of Saudi Arabia's Almarai has approved a capital investment plan which will reach SR21 billion ($5.6 billion) in the next five years it said.
The Gulf's largest dairy firm said the 2016-2020 program will replace their existing investment plan which foresaw spending worth SR15.7 billion between 2013 and 2017 and would cover expansion in the areas of farming manufacturing distribution and logistics.
'The objectives set by the board include increasing further its presence in all segments and geographies where it operates targeting to double consolidated sales while improving the financial performance' it said in a statement cited by local media and Reuters.
Almarai is present in the six Gulf countries as well as Egypt and Jordan.
It also owns Fondomonte an Argentinian farming firm which supplies feed to its dairy herd.
The company posted a 12 percent rise in first quarter net profit to SR306.5 million ($81.7 million) in the three months to March 31 aided by a 11.7 percent year-on-year increase in first-quarter sales which rose to SR3.04 billion.
Food companies in the Kingdom are drawing significant interest from investors who see the sector as a way to tap into the growing wealth in the region Reuters said.
The firm is expected to benefit from the opening of the Kingdom's equity market to direct foreign investment on June 15 and has been included by index compiler MSCI in its standalone Saudi index set to be launched on June 1.
Almarai will use its growing operating cash-flow besides bank facilities money from the Saudi Industrial Development Fund (SIDF) and the Agricultural Development Fund (ADF) or its existing sukuk program to finance its investment plan it said.
Investments required for product renovation and innovation have also been factored in the plan it added.
The Gulf's largest dairy firm said the 2016-2020 program will replace their existing investment plan which foresaw spending worth SR15.7 billion between 2013 and 2017 and would cover expansion in the areas of farming manufacturing distribution and logistics.
'The objectives set by the board include increasing further its presence in all segments and geographies where it operates targeting to double consolidated sales while improving the financial performance' it said in a statement cited by local media and Reuters.
Almarai is present in the six Gulf countries as well as Egypt and Jordan.
It also owns Fondomonte an Argentinian farming firm which supplies feed to its dairy herd.
The company posted a 12 percent rise in first quarter net profit to SR306.5 million ($81.7 million) in the three months to March 31 aided by a 11.7 percent year-on-year increase in first-quarter sales which rose to SR3.04 billion.
Food companies in the Kingdom are drawing significant interest from investors who see the sector as a way to tap into the growing wealth in the region Reuters said.
The firm is expected to benefit from the opening of the Kingdom's equity market to direct foreign investment on June 15 and has been included by index compiler MSCI in its standalone Saudi index set to be launched on June 1.
Almarai will use its growing operating cash-flow besides bank facilities money from the Saudi Industrial Development Fund (SIDF) and the Agricultural Development Fund (ADF) or its existing sukuk program to finance its investment plan it said.
Investments required for product renovation and innovation have also been factored in the plan it added.
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