For the 2023 financial year just ended, Saudi-Arabia based poultry company Tanmiah Food Company reports a doubling in sales revenue, which it attributed to strong performance in fresh poultry sales and its food franchise.
For the last fiscal year ending on December 31, Tanmiah Food Company reports a 21% year-on-year increase in sales revenue to just under 2.1 billion Saudi Arabian riyal (SAR; US$558 million).
This improvement the company attributed to higher sales across the group’s core businesses. Fresh poultry was a key driver, it says, while there was a three-fold increase in sales by its food franchise.
Gross profit was up by 17.8% at SAR494.8 million, and operating profit by 20.7% at SAR136.7million.
Compared with the previous fiscal year of SAR186.8 million, the group’s net profit tumbled to SAR75.9 million. However, a one-off gain of around SAR102 million was included in the results for the 2022 fiscal year. This related to the company’s strategic partnership with Tyson Foods. Furthermore, the year just ended saw a reduction in subsidy pay-out, increased price pressure in the market, and continued expansion of stores for both fresh poultry and quick service restaurants (Popeyes).
Quarterly revenue up over 20% year-on-year
Continuous improvements in all business segments were behind a 20.3% year-on-year rise in overall revenue reported by Tanmiah Food for the fourth quarter of 2023. Sales amounted to SAR576.3 million — up from SAR478.8 million for the same three-month period of 2022.
As noted above for the full fiscal year, the one-off payment was behind the reported drop in net profit for the October-December quarter from SAR123.3 million in 2022 to SAR26.4 million for the quarter just ended. If this gain is excluded, net profit would be up by 23% year-on-year.
For the quarter just ended, Tanmiah Food comments that it achieved higher volumes and improved operational efficiency. However, it also noted the lower subsidy pay-out and an aggressive ramping-up in its food franchise.
More on Tanmiah Food Company
With annual slaughterings of more than 121 million birds, Tanmiah Food Company is easily among the 10 largest poultry companies in the Middle East, according to WATTPoultry.com’s Top Poultry Companies survey.
One month ago, the company announced that it had secured credit for planned expansion.
According to the group’s web site, Tanmiah Food Company has 3,000 employees working at its 20 branches in seven different countries. The firm makes more than 6,000 deliveries daily.
Of the group’s two subsidiaries, the Agricultural Development Company Ltd covers the production of chickens with the brand name “Tanmiah Food Company.” Birds are reared locally in modern poultry houses on corn-based feeds. The product portfolio includes a variety of halal chicken products — whole and parts, as well as fresh, frozen, marinated, and ready-to-cook (RTC).
Tanmiah Food’s other affiliate is Desert Hills for Veterinary Services Company Ltd. It represents international animal health and equipment brands for farmed animals and pets, in addition to animal feed production, and sales of hatching eggs and day-old chicks.
The group’s restaurant segment holds an agreement for a master franchise with chicken quick-service restaurant chain Popeyes.
An agreement reached with PLK Europe GmbH late last year will see Tanmiah Food expand the Popeyes franchise to Bahrain and Kuwait.
