Tanmiah achieves substantial improvement in profitability, with strong prospects for growth
- Enhancement of revenues and gross profit during the year, supported by ongoing execution of expansion plans
- Fresh poultry continued to lead the 43% top line growth in 2022
Riyadh, Saudi Arabia, 12 February 2023 -Tanmiah Food Company (“Tanmiah” or the “Company”, 2281 on the Saudi Exchange), announced its results for year ending on 31 December 2022, with a 42.8% year-on-year (YoY) rise 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).
Growth Strategy
As the company concludes yet another successful year in its long journey, the solid foundation has remained in place, to allow Tanmiah to continue to progress in terms of its expansion agenda. The Company is strongly positioned to embark on a new phase of growth and development, aided by expansion across all stages of the value chain and access to new geographies that will enable Tanmiah to unlock multiple opportunities in the fast-growing global Halal food market. This collaboration is set to accelerate the Company’s growth and reinforce its commitment to the Kingdom’s objectives of food security and self-sufficiency, whilst bringing world-class industry know-how to the domestic market.
