Tanmiah Food H1 2023 profit up 2% to SAR 32.4 mln; Q2 at SAR 11.4 mln

Tanmiah Food Co. reported a net profit of SAR 32.4 million in H1 2023, a rise of 2% from SAR 31.7 million a year earlier.

The company’s revenue increased 26.6% year-on-year (YoY) to SAR 983.1 million due to the improved performance of all segments. Fresh poultry was the key contributor to this growth. Meanwhile, revenues from food franchise operations nearly quadrupled YoY to SAR 37 million in H1 2023, while animal feed and health witnessed a rise of 32.4% YoY in revenue.

Operating profit jumped 63.5% YoY to SAR 57.9 million, thanks to higher sales volumes.

The second-quarter net profit dived 62.3% to SAR 11.4 million from SAR 30.2 million in Q2 2022. The company was impacted by the continued pricing pressures in the market, a subsidy decrease, and ongoing efforts to bolster production capacity, which outweighed the improved volumes during the quarter.

Selling, general and administrative expenses (SG&A) also increased as Tanmiah remained focused on boosting its market reach by quickly expanding its distribution network, including the food franchise operations.

Revenue grew by 14.3% YoY to SAR 498.7 million. This was mainly driven by fresh poultry sales, which climbed by 10.3% YoY to SAR 419.7 million.

Compared to Q1 2023, net earnings fell by 45.7% from SAR 21 million, despite the jump in sales volumes.

Shareholders’ equity, before minority interest, rose to SAR 577 million as of June 30, 2023, from SAR 377.7 million a year earlier.

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