Almunajem Foods bids for stake in Al Jouf

Saudi Arabia’s Almunajem Foods Co. has started talks to get a number involvement successful the section concern Al Jouf Agricultural Development Company.

In a banal speech filing yesterday (19 January), Almunajem Foods said the imaginable concern successful the agribusiness is aligned with its strategy of “achieving continuous maturation and strengthening its presumption wrong the nutrient sector”.

Al Jouf cultivates fruit, vegetables and grains specified arsenic potatoes, onions and wheat but besides produces olive oil, honey, pickles, and French fries, according to its website. It was founded successful 1988.

Almunajem Foods, which is predominately engaged successful poultry accumulation and processing, said it is exploring a transaction successful which it would subscribe to caller Al Jouf shares each priced astatine SR52.5 ($14).

“This inaugural forms portion of Almunajem Foods Company’s efforts to heighten integration crossed the nutrient worth concatenation and to measure concern opportunities that are accordant with its semipermanent objectives, enactment nutrient security, diversify maturation sources, and make added worth for its shareholders,” Almunajem added successful the filing.

Any imaginable statement betwixt Almunajem Foods and Al Jouf remains taxable to interior approvals astatine some companies, arsenic good arsenic regulatory clearance from the applicable authorities.

The talks travel Almunajem Foods’ caller seven-year processing and organisation statement with Balady Poultry successful Saudi Arabia.

Almunajem Foods markets much than 800 products, runs 1 mill and 13 branches. Its full accumulation capableness is astir 58,000 metric tonnes and employs much than 2,100 people, according to its website.

Last month, Almunajem received the archetypal tranche of a semipermanent indebtedness from the Saudi Industrial Development Fund (SIDF), amounting to SR11.6m retired of a full approved installation of SR97.3m.

The backing volition partially concern superior expenditure for the enlargement of its nutrient accumulation installation successful Jeddah. The works is designed to person an yearly accumulation capableness of 35,000 tonnes.

Installation of manufacturing enactment instrumentality is scheduled to statesman this quarter, with commercialized operations expected to commencement successful the 2nd 4th of this year.

Almunajem Foods issued its third-quarter and year-to-date results successful November.

Revenue for the 3 months to 30 September roseate 2.2% to SR816.1m.
However, operating nett fell 5.2% to SR36.4m and nett net dropped 21.7% to SR31.7m.

The summation successful gross was attributed to a emergence successful volumes crossed each categories contempt a driblet successful mean selling prices.

Nine-month gross dipped 0.5% to SR2.51bn portion operating nett decreased 46% to SR118.3m. Net nett was down 52% astatine SR102.7m.