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Mazen Badawood CEO of Al-Jouf Agricultural
Al-Jouf Agricultural Development Co. focused on improving profitability and stopping losses in 2020, along with setting a 10-year strategy that aims to transform it into an agro-industrial firm in line with Vision 2030, chief executive officer Mazen Badawood told Argaam in a telephone interview.
The agricultural and manufacturing segments complement each other, giving the company a competitive advantage compared to market peers. Al-Jouf Agricultural owns all potentials from farming to transforming agricultural products into industrial food products that cater to consumer demand, which will boost its profitability, he added.
The company reported robust financial operating and non-operating results in 2020, compared to the previous year. It also reported better performance in the industrial and agricultural activity, Badawood affirmed, adding that he is optimistic for the two segments’ performance in the coming years, which will also reflect positively on the company’s financials.
The industrial food sector in the Kingdom is stable and promising, offering many opportunities. “We always seek expansions, as part of our strategy. We’re studying many opportunities to decide whether they are appropriate for the local market in light of the company’s potentials,” Badawood explained.
For the French Fries factory, he said the project is part of the company’s core strategy and helps meet the demand of the Saudi market and reduce imports.
Al-Jouf Agricultural contacted top suppliers and specialist experts in the French Fries industry to develop the project, according to the global standards and planned schedule.
Located on the company’s current premises, the French Fries project will give the firm a competitive advantage based on access to fresh raw materials throughout the year, which will reflect positively on the product quality and cost.
“The project’s finance sources are still under study. We are considering many options and will take a decision soon,” Badawood noted.
Speaking of the land grant, he added that Al-Jouf Agricultural invested the 426 million square meters land in the cultivation of olives, fruits, palms, and greenhouse vegetables.
The company also has an industrial complex for olive oil and production of pickled food, and will soon launch the French Fries factory.
Al-Jouf Province is one of the best agricultural regions in the Kingdom. It aims to be the country’s food basket. The company is working with Al-Jouf Municipality and the Ministry of Environment, Water and Agriculture on many initiatives, which will enhance the region’s development, agricultural efficiency, and water consumption rationalization, Badawood pointed out.
The Saudi-listed company swung to net profit of SAR 21.4 million in 2020, compared to a loss of SAR 20.8 million in 2019, Argaam reported.
Related News
Al-Jouf Agricultural swings to SAR 21.4 mln profit in 2020 |
Al-Jouf Agricultural approves SAR 70 mln French fries factory |
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