Almarai increases poultry interests
In a statement to the Saudi Arabian stock exchange Tadawul, Almarai outlined that it had purchased 37.6% of the share capital of Pure Beed for a total consideration of SAR52.9m, giving it a 93.5% control of the poultry business.
It said: “Pure Breed main operations are focused on poultry broiler grandparent farming and the increase in shareholding will add to Almarai’s on-going efforts to further strengthen the poultry industry in Saudi Arabia and Gulf Cooperation Council, and secure its supply of poultry parent stock.”
In Almarai’s most recent financial results, it was revealed that its revenue growth for the six months to 20 June was driven by successes in its poultry division as opposed to its dairy and juice offerings. It reported a 24.2% category profit driven mainly by revenue growth of 20.2%. This top line growth was supported by its food service segment while significant profit growth was helped by "consistent lower mortality and better cost control".
In February, Almarai announced the acquisition of value-added halal meat and poultry producer Premier Foods. The business was acquired for SAR108m, with Almarai looking to increase its footprint in the food service channel.
