SAUDI ARABIA – Saudi-based Almunajem Foods Company has announced plans to commence construction on a new food factory in Jeddah, with an investment totaling 157 million Saudi riyals ($41.88 million).
Following the acquisition of necessary approvals, the construction is set to kick off in the third quarter of 2024.
The factory, slated to be operational by the first quarter of 2026, will boast a production capacity of 35,000 tonnes annually, encompassing poultry, red meat, seafood, and dairy products.
The project will span an expansive 56,000 square meters within Jeddah’s Third Industrial City – it is being envisioned to be a self-financed endeavor, supplemented by additional external funding sources, as indicated in a statement released to the Saudi stock exchange.
The project will come in at a period where the Almunajem Foods isn’t enjoying great financial success.
This company, which is a prominent player in the Saudi Joint Stock Company arena headquartered in Riyadh, reported its financial performance for the full year ending December 31, 2023.
Despite the company’s earnings witnessing a decline, with sales totaling SAR 3,314.4 million (US$ 884 million) compared to SAR 2,978.52 million(US$ 794 million) the previous year, the company remains optimistic about its future trajectory.
Despite a downturn in earnings per share growth by 2.8% last year, the company’s three-year outlook reflects a modest 9.8% overall rise in EPS.
However, this growth trajectory falls short of market expectations, with projections anticipating a 19% growth rate over the next year, surpassing the company’s recent medium-term annualized growth rates.
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