Almarai CEO says new poultry investments to double market share, expects imports to fall by 20%

Abdullah Al Bader, CEO of Almarai Co.

Almarai Co.'s capital investments worth SAR 6.6 billion to expand the poultry segment is an addition to the previous investments, which aim to double the company's market share, CEO Abdullah Al Bader told Argaam.

He added that the company's market share of frozen poultry reached nearly 34%, while the poultry business market share in general hit 12%.

The new investments will be carried out in three areas across the Kingdom over three phases, Al Bader disclosed, adding the investments are part of the supply chain that includes the poultry mothers, poultry feeding farms, specialized plants, and transport fleet.

He pointed out that the firm developed high-quality experience in the segment, which helps carry out new investments from scratch. The company is also looking at acquisition opportunities in the Saudi market.

“All options are available, but the basis will be investment from scratch,” the CEO said.

The imports of poultry in the Saudi market amounted to nearly 45%, Al Bader noted, expecting the new investments to reduce the volume of imports by nearly 20%.

Al Bader also expected the investments to double the company's annual production to nearly 450 million birds.

Almarai's investment policy aims to continue investing and growing, and the new investments will likely reflect positively on the company's accumulated profits over the coming years.

The investments are in line with the Vision 2030 program, which supports the private sector and boost local production.

The Tadawul-listed firm entered into consultations with specialized committees within “Shareek” program to study ways to crystallize the investments within the program, the CEO concluded.

On May 2, 2021, Almarai’s board of directors approved SAR 6.6 billion in capital investments to expand the poultry segment, with the aim of doubling its market share, Argaam reported.