Almarai earmarks $4 billion for expansion through 2031

Saudi Arabia’s Almarai plans to invest more than $4 billion through 2031 to expand production capacity, diversify its food and beverage portfolio and strengthen its presence across priority markets.

The Riyadh-based company unveiled details of its 2026–2031 growth strategy at a capital markets day on Thursday, outlining four priorities covering established businesses, new product categories, emerging distribution channels and geographical expansion.

The investment programme, exceeding 15 billion Saudi riyals, will support additional manufacturing capacity, operational improvements and capabilities intended to sustain growth across its regional operations.

Almarai, one of the Middle East and North Africa’s largest food and beverage manufacturers and distributors, said its strategy would reinforce existing product categories while pursuing selective opportunities in segments offering attractive growth prospects.

The company also intends to accelerate expansion through foodservice and e-commerce, two distribution channels identified as increasingly important to its commercial development.

Chief executive Fawaz Aljasser presented the strategy to investors, bankers, financial analysts and business representatives attending the Riyadh event.

Aljasser said the investment programme would extend beyond financial performance, with priorities including wider consumer choice, stronger supply chains and increased domestic manufacturing capabilities.

“Our new growth strategy is supported by our trusted brands, industry-leading capabilities, and one of the region’s most integrated food and beverage platforms,” he said.

The announcement follows approval of the strategy by Almarai’s board of directors on October 6, establishing the framework for its next investment and operational development cycle.

Under the approved framework, management will focus on improving productivity, strengthening food supply resilience, increasing profitability through disciplined growth and generating additional cash flow to support shareholder returns.

The company said capital allocation would be guided by commercial opportunities and operational efficiency, with investments intended to improve returns from its existing manufacturing, logistics and distribution infrastructure.

Expansion into additional food categories will be selective rather than broad-based, reflecting management’s intention to concentrate resources where Almarai believes its production capabilities and established distribution network offer competitive advantages.

Geographical growth will similarly prioritise markets where the company already operates or identifies opportunities compatible with its existing capabilities.

Almarai has not announced a detailed country-by-country allocation of the investment programme or specified the individual projects that will account for the entire planned expenditure.

The strategy comes as the company reports continued revenue growth across its principal businesses, supported by demand for established products and contributions from investments in additional capacity.

Almarai reported third-quarter revenue of 6.19 billion riyals, an increase of 11 per cent from 5.55 billion riyals during the corresponding period of 2025.

The company attributed the improvement to sales growth across markets, product categories and distribution channels, including contributions from its poultry expansion and acquired water operations.

However, net profit remained broadly unchanged at 617.8 million riyals, reflecting higher feed shipping, distribution and energy costs that offset much of the benefit from increased sales.

Those results underline the importance of productivity improvements and cost management within the newly approved strategy, particularly as the company seeks to translate higher revenue into stronger profitability.

Almarai said its expansion plans would also contribute to Saudi Arabia’s objectives of strengthening food security, developing domestic manufacturing and diversifying economic activity.

The company expects demand for higher-quality food products and changing consumer purchasing patterns to provide opportunities across its established and prospective business categories.

Its integrated operating structure, encompassing manufacturing, supply chains, distribution and product development, will remain central to implementing the strategy.

Management identified innovation and consumer preferences as important considerations when assessing prospective investments, alongside the ability to scale production and maintain distribution efficiency.

The programme also builds upon substantial investment in poultry production, logistics and other operational facilities, with the company seeking greater returns from assets developed during earlier expansion phases.

Almarai’s board said the strategy itself carried no immediate material financial impact, adding that significant developments would be disclosed in accordance with applicable regulations.

The company is listed on the Saudi Exchange under trading symbol 2280, making its investment plans relevant to institutional investors assessing future capital expenditure and profitability.

Almarai said its plans would also seek to create value for employees, customers and shareholders through improved operating capabilities and broader commercial opportunities.

The capital markets presentation brought together representatives of the financial and business communities for discussions with company executives about strategic priorities and the proposed investment programme.

The company identified manufacturing, distribution, supply chain management and innovation as capabilities supporting its expansion across existing and prospective markets.