Tanmiah Delivers 8.0% Revenue Growth in Q1 2026, Demonstrating Strong Operational and Commercial Execution, and LongTerm Capital Allocation Discipline

(MENAFN- ipexcellera) Riyadh, Saudi Arabia, 10 May 2026 - Tanmiah Food Company (“Tanmi”h” or “he “C”mpany”, 2281 on the Saudi Exchange), established in 1962, one of the Middle East's leading providers of fresh poultry, processed proteins, animal feed, health products and restaurants operator, announced its results the three-month period ended 31 Marc“ 2026 (”Q1 2026”), reporting a 8.0% ye“r-o”-year (“YoY”) growth in revenues to reach SAR 731.2 million reflecting continued momentum across both Agribusiness and Restaurant Operations, despite a challenging market backdrop, seasonality, and geopolitical disruptions during March. Profitability was impacted during the period, with the Animal Feed and Health segment weighing on performance alongside elevated cost pressures, resulting in EBITDA declining 5.9% YoY to SAR 88.5 million and EBITDA margin contracting to 12.1% from 13.9%. The decline is expected to narrow over time as the asset network continues to be strengthened and optimized to support more efficient operations and sustained performance.

Zulfiqar Hamadani CEO of Tanmiah Group, commented:
“Q1 2026 reflects disciplined and agile execution in a challenging external environment, as we continued to operate effectively despite ongoing geopolitical tensions and supply chain complexity. Our diversified platform and proactive approach enabled us to maintain operational continuity, secure critical inputs, and deliver solid revenue growth across both Agribusiness and Restaurant Operations. In Agribusiness, we saw increased volumes and improved efficiencies, while taking decisive actions to optimize our asset base and enhance cost competitiveness. Restaurant Operations progressed in line with our business plan around disciplined growth, prioritizing targeted campaigns and portfolio enhancements that drove strong customer engagement and supported revenue growth.

We have also made meaningful progress in our strategic priorities, including strengthening our core operations, advancing operational efficiency, optimizing our asset network, and exercising prudent capital allocation in line with our long-term priorities. As we move forward, our focus remains on disciplined execution, maximizing returns from our recent investments, and reinforcing our role in supporting food security in the Kingdom, while positioning the business for improved profitability as market conditions evolve.”

Summary Financial Highlights

SAR millionQ1-26Q1-25% Change
YoYQ4-25% Change
QoQ
Revenue731.2677.18.0%712.72.6%
Gross Profit166.8168.4-1.0%144.815.2%
Gross Profit Margin22.8%24.9%-206bps20.3%249bps
EBITDA88.594.0-5.9%68.030.1%
EBITDA Margin12.1%13.9%-178bps9.5%255bps
Net Profit (Loss)1.123.2-95.4%(26.2)104.0%
Net Profit (Loss) attributable to Shareholders of the Company(1.1)18.9-106.0%(22.4)95%

Segmental Revenue Analysis

The Agribusiness segment, comprising Fresh Poultry and Animal Feed and Health Products, is the core contributor to revenue, accounting for approximately 92% of total revenue in Q1 2026. Fresh Poultry revenue increased 10.4% YoY to SAR 551.9 million, driven by higher volumes of 43.2 million birds (+8.6% YoY) with average daily production reaching 604K birds (+7.8% YoY), alongside improved average selling prices and strong sales execution. Revenue in the Animal Feed and Health Products segment declined by 12.3% YoY to SAR 117.4 million in Q1 2026 reflecting softer market conditions that weighed on feed, medication and vaccine sales, partially offset by feed additives and the DOC segment.

Restaurant Operations revenue increased 42.2% YoY to SAR 61.9 million in Q1 2026, driven by successful marketing campaigns boosting in-store transactions. Performance remained robust across key metrics, with campaigns driving higher customer engagement with Ramadan performance significantly exceeding prior year levels. The total network of operational outlets stands at 94, as of 31 March 2026; 85 in Saudi Arabia, 4 in Bahrain and 5 in Kuwait.

Income Statement Analysis

Cost of Sales rose 10.9% YoY to SAR 564.4 million in Q1 2026, reflecting higher fuel, utility and logistics costs, as well as increased depreciation from newly commissioned facilities, partially offset by operational efficiencies and cost optimization measures. Gross profit declined 1.0% YoY to SAR 166.8 million, with gross margin contracting to 22.8% from 24.9%, with softer performance in the Animal Feed and Health segment further impacting margins.

Q1 2026 EBITDA amounted to SAR 88.5 million, down from SAR 94.0 million in the prior year, with the EBITDA margin declining to 12.1% from 13.9% in Q1 2025.

The Company recorded a Net Loss Attributable to Shareholders of SAR 1.1 million in Q1 2026, compared to a net profit of SAR 18.9 million in Q1 2025. Agribusiness (Fresh Poultry and Animal Feed and Health Products) generated a net profit of SAR 10.8 million, which was more than offset by a net loss of SAR 11.9 million in Restaurant Operations. Performance in Restaurant Operations was further impacted by higher reliance on aggregators during Ramadan and geopolitical-related pressures in certain markets. No additional Popeyes® stores are planned for 2026, other than replacements or relocations. The YoY decline reflects continued market challenges, higher diesel and utility costs, increased distribution expenses, elevated financing costs, and ramp-up costs for new facilities, partially offset by cost optimization initiatives and higher production volumes. In addition, aggregatorrelated cost pressures in Kuwait and Bahrain weighed on performance within the Restaurant Operations segment.

Q1 2026 capital expenditure amounted to SAR 37.4 million, down 81.6% YoY, reflecting a transition beyond peak capex as the Company shifts its focus toward optimizing utilization and generating returns from recently commissioned assets.

Strategic Execution and Outlook

Tanmiah has made solid progress in Q1 2026 against its refreshed strategic framework, advancing key initiatives across its four strategic priorities.

1.Customer-focused commercial excellence and value-added growth
The business delivered continued commercial momentum, expanding across the GCC, enhancing its product mix, and strengthening distribution while progressing additional initiatives to support highermargin growth.

2.Strengthening the core and optimizing the asset base
Core operations advanced with lower production costs and added farming capacity, alongside steady progress on commissioning new facilities and supporting infrastructure.

3.Operational excellence, liquidity management, and cost optimization
Operational discipline remained strong, with secured input materials, reduced financing costs, and ongoing execution of key efficiency projects, including alternative energy solutions such as solar and LPG conversions.

4.Digital, data and people are the main enablers
Digital and organizational initiatives continued to progress, with ecommerce expansion underway and SAP 4HANA deployment planned for H2 2026.

Tanmiah expects progressive improvement over the course of 2026 with market conditions showing early signs of moving toward a more balanced supply-demand environment, supported by gradually improving pricing dynamics and a more rational competitive landscape. The Company remains focused on increasing utilization of recently commissioned assets, advancing cost optimization and operational efficiency initiatives, expanding value-added and higher-margin product categories, and strengthening its route-to-market and customer engagement capabilities. While near-term risks persist, including cost inflation and ongoing supply chain complexity linked to geopolitical developments, Tanmiah’s integrated operating model, strong biosecurity, and disciplined execution position it well to benefit from improving market conditions and deliver sustainable profitability over the medium term.

ESG Commitments

Tanmiah continues to advance its strategic and integrated approach to sustainability, founded on its Omnipreneurship philosophy of giving, earning, and sustaining. The Company's ESG governance framework remains strong, guided by the Board ESG Committee and supported by a cross-functional ESG Committee at management level to ensure alignment between strategy and on-ground execution. The focus remains on driving progress across key areas aligned with the Kingdom's Vision 2030 and the United Nations Sustainable Development Goals.
Tanmiah is executing a comprehensive portfolio of sustainability initiatives with an estimated total EBITDA impact of approximately SAR 100 million, of which SAR 35 million was realized in 2025. The Company's decarbonization program continues to advance, with diesel-to-LPG conversions progressing for incinerators and boilers across farms and processing facilities. On renewable energy, the Haradh solar project is on track for completion in July 2026, and approval has been secured for four additional solar sites. The geothermal cooling pilot was successfully implemented in February 2026, with the Company now awaiting three months of operational data to assess efficiency gains before broader rollout.
The Company's waste management program at one of our primary processing facilities and ongoing waste valorization in meat processing are advancing circular economy objectives, while a new Recyclee pilot at Popeyes stores is converting food waste into resources, with plans to expand to five stores following successful results. In parallel, Tanmiah is advancing its trials on alternative feed solutions through Moringa trials, aiming to improve feed conversion and reduce reliance on conventional feed inputs. Feed reformulation initiatives using enzyme and Panbonis technologies are in preparation to further enhance sustainability outcomes.
Looking ahead, Tanmiah remains focused on completing its decarbonization and renewable energy projects, scaling successful pilots, and advancing innovative feed technologies to support long-term value creation and a more sustainable food system in Saudi Arabia and the region.

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