Almarai Company is pleased to announce to its shareholders that the Board of Directors of the Company has, during its meeting held on Wednesday evening of June 8 2016, carried out a review of the five-year plan for the period 2017-2021. This Plan reflects the recent global and regional economic developments, as well as the implications of the Saudi Arabia Vision 2030 program.
The Board of Directors has approved the plan that should lead Almarai to reinforcing its position as the consumers' preferred choice for superior, nutritious Food and Beverage products in the Arab world.
Almarai will continue execute its defined strategies and action plans, building on the strength in its core businesses and growing returns in its Poultry and Infant Nutrition categories, as well as the Dairy and Juice businesses in Egypt and Jordan (managed through the Joint-Venture International Dairy and Juice- IDJ). The plan forecasts a compound annual growth rate for sales approximately 10% pp.
The distinctive characteristics of this plan are the focus on operating cost control and the optimal usage of available funds. As a result, the capital investment foreseen during the period 2017 - 2021 is estimated to be SAR 14.5 billion and will be focused on replacement of existing assets; improvement of production capacities and capabilities in farms and manufacturing facilities; distribution and transportation facilities; extension of geographical footprint; the enhancement of innovation and product development capabilities. This investment program will be financed from operating cash flow, as well as taking advantage of finance resources available at banks, the SIDF, the ADF and Sukuk programs.
The plan will also create, between now and the end of 2021, 4,500 jobs for Saudi nationals, out of which 20% will be for females, further confirming the important economic and social role of Almarai within the food industry in the Kingdom.
The Capital Market Authority and Saudi Exchange take no responsibility for the contents of this disclosure, make no representations as to its accuracy or completeness, and expressly disclaim any liability whatsoever for any loss arising from, or incurred in reliance upon, any part of this disclosure, and the issuer accepts full responsibility for the accuracy of the information contained in it and confirms, having made all reasonable enquiries, that to the best of their knowledge and belief, there are no other facts or information the omission of which would make the disclosure misleading, incomplete or inaccurate.