Balady Poultry profit boosted by sales, cost control; market share at 6%: Exec

Abdulaziz bin Hashbal, Executive Vice President, Balady Poultry Trading Co.

Abdulaziz bin Hashbal, Executive Vice President, Balady Poultry Trading Co., said that the company’s Q1 2024 profit growth was driven by two main factors: increased sales and effective cost control, all while maintaining product quality and ongoing expansions.

In an interview with Argaam at the Middle East Poultry Expo, Hashbal stated that the company is currently in its prime condition after witnessing a robust start to the year. Production rose from 164,000 birds per day at the end of Q4 2023 to 195,000 birds per day by the end of Q1 2024, with sales exceeding SAR 230 million.

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The company’s investment is expected to reach SAR 500 million over the next three years through the expansion of production capacity at the newly announced poultry plant. The facility will have a production capacity of 500,000 birds per day.

Balady Poultry’s market share in the food and poultry sector reached 6% by the end of the current quarter, with the highest demand for poultry products in Jazan, Hashbal added.

He expected growing demand in the food sector and stable prices, despite an unprecedented cost increase of more than 70% in hatching egg prices.

Hashbal pointed out that the main challenges include fluctuating raw material prices and occasional shortages, which delay expansions and impact supply chains.

The company plans to increase the production of processed food products and cuts to leverage market growth. It will also use modern technologies to boost the output of shish tawook and marinades.

Balady Poultry’s profit rose to SAR 40.6 million by the end of Q1 2024, a 67% increase, compared to SAR 24.3 million in the same period in 2023, according to data compiled by Argaam.