Almarai plans $2.8 bln five-year capital investment

Saudi Arabia’s top dairy producer Almarai Company has approved a five-year business plan for 2019-2023 period, allocating a capital investment of SAR 10.6 billion ($2.8 billion), the company said in a statement to Tadawul on Sunday.

Given the persistent challenging economic conditions across the region, the Tadawul-listed dairy and foods producer will focus on efficiency and cost optimization measures throughout the five-year plan to ensure continuous competitive advantage.

The investment program will be financed through the increasing operating cash flow, and when appropriate through banks, Saudi Industrial Development Fund (SIDF), Agricultural Development Fund (ADF) and local and international Sukuk programs, the statement added.

Almarai plans to revamp its seven business units and grow its cognitive computing as well as growing digitalization of the food and beverage industry.

The investments will include the replacement of existing assets; improvement of production capacities and capabilities in farms and manufacturing facilities; distribution and transportation facilities; extension of geographical footprint and the enhancement of innovation and product development capabilities.

The plan, which was approved on May 23, confirmed that the infrastructure, in terms of processes, people and systems, is in place to enable the company to face the future challenges and meet its long-term ambition of Almarai 2025 program launched last year.