Almarai approves 2017-2021 business plan
On its evening meeting on June 8th, 2016, the board of Almarai examined the company’s five-year business plan which will cover the period 2017-2021. In its general framework, the plan presented the current economic developments at the global and regional levels, and the impact of Saudi Vision 2030 programs.
Then the Board approved the plan that will boost Almarai’s standing as a leading company in food processing, which made its products the best choice for customers.
Under the plan, Almarai is continuing implementation of the specified strategies and work plans. These will strengthen major operation sectors, grow revenues from poultry and infant milk formulae, in addition to dairy and juice products in Arab Republic of Egypt and the Hashemite Kingdom of Jordan through the joint venture of diary and juices “IDJ”. The plan foresees nearly 10% compound annual growth for sales.
The plan will focus on monitoring operating costs, optimizing use of available resources, and targeting deployment of capital investment worth SAR 14.5 billion ($3.87 billion), during the period, which will be spent on areas including replacing existing assets, improvements in production capacities in farms, and manufacturing and distribution facilities and expanding into other geographies. The strategy also targets promoting innovation and creativity potentialities, and product development. These investment programs will be funded from the corporate operating cash flow, as well as financing from banks, the Saudi Industrial Development Fund “SIDF”, the Agricultural Development Fund “ADF”, and sukuk issues.
The plan will contribute with 4,500 local jobs to Saudi nationals, 20% of them will go to Saudi females. Programs of the plan stress the important and pioneering social and economic role played by Almarai Company in food industry in Saudi Arabia.