Almarai Company (2280) CMD 2026 summary

Strategic shift and 2031 ambition

• Strategy shifts from capacity and capability building to execution, utilization and value creation, building on the SAR 18bn investment program; ~SAR 12bn deployed.

• 2031 targets include revenue at 1.5x and earnings at 1.65x the 2026 base, with cumulative cash generation of SAR 31bn or more.

• Saudi food and beverage market estimated at SAR 220bn; current participation spans ~30% of the market, with ~25% average share in those categories.

• Four pillars: accelerate core categories, enter selected adjacencies, expand foodservice and e-commerce, and grow in priority markets.

Growth priorities

• Core focus includes dairy, juice, bakery and poultry, with emphasis on protecting the base, sales growth, profitability and operational efficiency.

• Selective expansion includes bottled water, frozen bakery, ice cream, seafood and red meat; investments require strategic fit, a right to win and attractive returns.

• Most growth is expected from existing businesses; core growth target is ~5% CAGR, while capacity-led growth and adjacencies contribute to the planned revenue increase.

• Foodservice and e-commerce are targeted for faster growth; geographic priorities include GCC share gains, stronger returns in Egypt and Jordan, and selective export markets.

• Poultry is expected to supply 20%-25% of the Saudi market by end-2027; frozen bakery is planned for Q4 2027, Egypt bakery by end-2027 and Jordan cheese by Q1 2028.

Financial outlook and profitability

• Revenue target rises from ~SAR 24bn in 2026 to ~SAR 36bn in 2031, an 8% CAGR, with growth planned without price increases.

• Net income target is 1.6x the 2026 level and ~10% CAGR through 2031; growth is targeted at least 200 bps above revenue growth, with the SAR 600m YoY diesel cost impact incorporated.

• Revenue growth mix: ~35% from core categories at ~5% CAGR, ~50% from capacity-led growth at ~10% CAGR and ~15% from adjacencies at ~20% CAGR.

• Cumulative operating cash flow target is ~SAR 31bn for 2027-2031; annual operating cash flow is targeted above SAR 7bn and free cash flow at ~SAR 4bn by 2031.

• Higher utilization, positive mix, productivity, procurement efficiencies, digitization and automation are expected to improve returns; factories currently run at 60%-70% utilization.