Tanmiah achieves substantial improvement in profitability, with strong prospects for growth

Tanmiah achieves substantial improvement in profitability, with strong prospects for growth

- Fresh poultry continued to lead the 43% top line growth in 2022

Riyadh, Saudi Arabia: Tanmiah Food Company (“Tanmiah” or the “Company”, 2281 on the Saudi Exchange), a market-leading provider of fresh and processed poultry and other meat products, animal feed and health products, and a foods brand franchise operator, today announced its results for the full year ending on 31 December 2022, with a 42.8% year-on-year (YoY) increase in revenues to SAR 1,727.0 million.

Gross margin substantially improved from 19.2% in FY2021 to 24.3%, while EBITDA of SAR 220.3 million (+142.5% YoY) yielded a margin of 13%. Net profit attributable to owners of the company increased significantly from SAR 13.6 million to SAR 186.8 million. This increase is due to a one-off gain amounting to SAR 101.9 million recorded in the income statement, resulting from the Tyson transaction, which involved acquisition of a 60% equity stake in Supreme Foods Processing Company (SFPC). As per the applicable accounting standards, this business is now classified as discontinued operations. The gain due to the acquisition of the 15% stake in Agricultural Development Company Limited (ADC) by Tyson amounting to SAR 74 million, was recorded directly in equity.

Zulfiqar Hamadani CEO of Tanmiah, commented:

“We are