Almarai’s board approves SAR 18B five-year strategic plan

Almarai Co. headquarters

Almarai Co.’s board of directors approved the company's strategic plan for the five-year period ending December 2028, during its meeting held today, March 18.

According to the company’s Tadawul statement, the primary objectives target fostering continuous growth, optimizing sales, and enhancing financial performance across Almarai’s various segments.

To achieve these goals, the plan prioritizes several strategic enablers, including bolstering supply chain capabilities, leveraging brand strength, fostering innovation and development, promoting sustainability, optimizing operational efficiency, harnessing technology, and nurturing human capital capabilities.

The strategic plan entails an investment program exceeding SAR 18 billion, distributed among various strategic pillars and enablers, some of which are already underway.

Accordingly, approximately SAR 7 billion will be allocated for the poultry segment’s expansion, while SAR 5 billion earmarked for enhancing current core product categories (including dairy, juices, and bakery products). Meanwhile, as much as SAR 1 billion will be allotted for tapping new promising food segments.

Additionally, SAR 4 billion will be dedicated to developing supply chains and sales capabilities to bolster local and regional expansion plans. Further, another SAR 1 billion will be allocated to support and expedite technology development and innovation investments.

Funding for the strategic plan will be sourced from the company's operational cash flows over the next five years.

Almarai’s board is confident in achieving its ambitious objectives, citing clearly defined strategies and dedicated action plans aimed at reinforcing strategic pillars. The board reaffirms its commitment to leveraging all necessary resources to meet these goals, the statement added.

Prince Naif Bin Sultan, Chairman of Almarai, confirmed that the company will persist in executing strategies to bolster its penetration into new markets and broaden its segments. He emphasized that the capital investment program for the targeted period, totaling SAR 18 billion, will be funded from the company's operating cash flows.

The Chairman explained that the plan aims to sustainably grow core operating segments and expand the company’s presence, particularly in the GCC, Egypt, Jordan, and other regional markets.

Furthermore, the plan aims to foster innovation capabilities to introduce new food segments and products, he added.