‎“Tanmia” profits jump 1278% during 2022 to SR186.8 mln

Tanmiah Food Company Co. revealed an increase in net profit after zakat and tax during the year ending on December 31 to 186.8 million riyals, compared to 13.5 million riyals in 2021 AD, at a rate of 1277.6%. This came after today’s announcement of the annual financial results ending in 12-2022. 31.

The operational profit amounted to 113.6 million riyals in the year ending on December 31, compared to 10.3 million riyals in the year before last, with a growth of 995.9%.

The total shareholders’ equity “without minority rights” amounted to 662.6 million riyals in the current year, compared to 356.2 million riyals in the year before last, an increase of 86%.

The earnings per share in the current year reached 9.34 riyals, compared to 0.68 riyals in the previous year.

The company achieved an increase in net profit amounting to 186.8 million Saudi riyals in the fiscal year 2022 compared to 13.6 million Saudi riyals in the fiscal year 2021. The net profit includes a one-time gain of 101.9 million Saudi riyals as a result of the strategic partnership with Tyson Foods. ,

As previously announced, the transaction included the acquisition of a 60% stake in the premium food processing company (SFPC) by Tyson Foods, which was recorded as a one-time gain on the income statement. The exit gain of 15% of the Agricultural Development Company (ADC) shares of Tyson Foods, amounting to 74 million Saudi riyals, was recorded directly in equity.

The change in net profit is due to the following reasons:

Revenue: increased by 42.8% to SAR 1,727.0 million, as a result of the continuous growth of all products and services of the company. The revenue increase was mainly supported by fresh poultry sales during the year.

Sales costs increased by 33.7% to reach 1306.9 million Saudi riyals, which is due to the increase in sales volume in the fiscal year 2022, in addition to the sustainable strategic growth plans undertaken by the company to expand its production capabilities.

Gross Profit: Significantly increased by 81.3% in FY2022 to SAR 420.2 million, supported by continued recovery in margins, enhanced asset utilization, and improved operational efficiency.

Selling, general and administrative expenses increased by 38.9% to reach 306.7 million Saudi riyals in fiscal year 2022, which was commensurate with the largest sales volume during the year.

The company also achieved strong results during the fiscal year 2022, with revenues amounting to 1,727 million riyals, up 42.8% year-on-year, after it was 1,209.6 million Saudi riyals in the fiscal year 2021. The increase in revenues was mainly supported by the continued positive momentum across the entire portfolio. The company’s products and services, especially the fresh poultry sector, with increased development of its production capacity in order to accommodate the growing demand of local consumers for fresh chicken produced locally.

Food franchise operations have continued to achieve outstanding performance in line with development plans, since the launch of the Popeyes brand in 2021.

The company ended the year with 20 branches and continues to expand its network of branches throughout the Kingdom

Sales of fresh poultry, the largest contributor to the company’s revenues (85%), increased by 35.6% year-on-year to reach SAR 1,462.9 million in FY2022. This growth was due to the increase in production capacity to meet the growing demand from local consumers. On fresh poultry

Revenues for animal feed and health products grew by 79.8% year-on-year to reach 234.5 million Saudi riyals in fiscal year 2022, and the increase in sales is due to the high demand for animal health products and equipment.

Food franchise operating revenues were SAR 29.6 million for fiscal year 2022 (compared to just SAR 0.4 million in fiscal 2021), the first year since the launch of the food franchise strategy. During the fourth quarter, the development company opened 7 new branches of the Popeyes brand, bringing the total operating branches in the Kingdom to 20 branches.