Almarai Co said that its board of directors has approved the company’s five-year business plan during the period between 2020 and 2024 during its meeting held on Wednesday, 15 May.
The company is to invest up to SAR 7.1 billion as part of its second milestone review of Almarai 2025 initiated in 2017, the Gulf’s largest dairy company said in a statement to the Saudi Stock Exchange (Tadawul) late on Wednesday.
“This review confirmed that the company is on track with this long-term vision to reinforce its position as the consumers’ preferred choice for superior, nutritious Food and Beverage products in the Arab world,” the statement highlighted.
The newly approved business plan will enable the Saudi dairy-farm operator to face future challenges and meet its long-term ambition.
It also confirms the ongoing investment in its infrastructure, in terms of processes, people, and systems, according to the statement.
“Each of its business units will drive the company forward through growth and innovation across the traditional trade, modern trade and foodservice channels, with its operating model transformed by the implementation of automation, cyber-physical systems, cognitive computing and the growing digitalisation of the Food & Beverage industry,” Almarai said.
Almarai noted that the new plan comes in line with the company’s long-term investment cycle, calling for less expansionary investments and a further focus towards more efficiency and sustainability.
Almarai’s investments will include a replacement of existing assets, adoption of green and cleaner energy footprint, improvement of production capacities and capabilities in farms and manufacturing facilities, distribution and transportation facilities, an extension of geographical footprint, and the enhancement of innovation and product development capabilities, according to the statement.
The investment programme is planned to be financed via the company’s operating cash flow.
In the first quarter of 2019, Almarai reported a 2.58% year-on-year decline in profits, recording SAR 336 million.