• Revenues for fiscal year 2025 increased by 3.5% year-on-year despite challenging market conditions. This growth was supported by the company’s diversified operating platform, with a 41.8% year-on-year increase in restaurant revenues and a 1.3% year-on-year increase in agricultural business revenues.
• The total volume of fresh poultry sales increased to 168 million birds in 2025, an increase of 12.4%, and average sales reached 584,000 birds per day during the fourth quarter of the year.
• Launching two new facilities in Saudi Arabia, including the first factory dedicated to processing large birds and the first feed factory.
• Gross profit and operating profit before bank charges, zakat, depreciation and amortization for the fiscal year 2025 were affected by inflation in production costs and continued price pressures, yet a profit margin of 22.8% and 11.8% was achieved, respectively.
• Profitability declined year-on-year in 2025, and the net loss reflects continued investment in expanding production capacity and enhancing the company's resilience under challenging market price conditions, high inflation, and increased financing and depreciation costs.
• Implementing an updated strategic framework that focuses on customers and product innovation, improving core assets, increasing enhanced profit margin growth, maintaining a disciplined approach to capital management, and digitally empowering staff to achieve sustainable long-term value.

Riyadh, Saudi Arabia: Al Tanmia Food Company (referred to as “Al Tanmia” or the “Company,” listed on the Saudi Stock Exchange under the symbol 2281), established in 1962 and a leading producer and processor of fresh poultry products, food products, animal feed, animal health products, and restaurant operations, today announced its financial results for the year ended December 31, 2025 (FY 2025). The results revealed a 3.5% year-on-year increase in the Company’s revenues, reaching SAR 2,653.5 million. This growth was supported by the Company’s diversified operating model, driven by the strong performance of its restaurant sector and an increase in the average daily production of fresh poultry. Conversely, profitability during the year was affected by the decline in prices in the fresh poultry sector, as operating profit before bank expenses, zakat, depreciation and amortization decreased by 13.1% year-on-year to reach SAR 313.5 million compared to SAR 360.5 million in fiscal year 2024, and the operating profit margin before bank expenses, zakat, depreciation and amortization decreased to 11.8% compared to 14.1% in fiscal year 2024.

Commenting on the results, Mr. Zulfiqar Hamdani, the company’s CEO, said: “The development continued its progress during the fiscal year 2025, as it expanded its production capacity and strengthened its ability to increase sales and provide high-quality products that meet the growing demand from customers. The company also expanded the scope of its product distribution to include new regions, including expansion into the State of Kuwait earlier in the year.”

While the fresh poultry sector is experiencing a temporary market downturn due to ongoing price challenges and the increased availability of imported frozen products in the Saudi market, the company's diversified operating model has continued to demonstrate high levels of resilience. This is reflected in the growth of sales volumes within the agribusiness sector, alongside the exceptional revenue performance of the restaurant segment. The company affirms its confidence in the strength of market fundamentals and the continued demand for its products, with no plans to reduce production levels. Its integrated platform is well-positioned to continue achieving growth across various sectors, even in the challenging operating environment.

Looking ahead, as we continue to grow our production capacity through organic growth and by pursuing mergers and acquisitions, we will focus primarily on enhancing operational efficiency and maximizing the value of our existing infrastructure. Following significant investments in recent years, our primary focus is on improving unit economics through disciplined asset management and optimization, raising operational efficiency levels, and enhancing performance across our existing business. These efforts will help the company elevate the customer experience, deliver high-quality products, and continue to drive innovation and sustainability practices throughout its operations.

Sector revenue analysis

The agricultural business sector, which includes fresh poultry, feed products, and animal health, is the main contributor to the company's revenue, accounting for approximately 92 % of total revenue for fiscal year 2025. The fresh poultry sector generated revenue of SAR 2,018.2 million, a 2.3 % increase, reflecting sales volumes of 168 million birds, a 12.4 % increase, with average daily sales reaching 584,000 birds (a 6.1 % year-on-year increase). This growth in sales volumes was offset by a decrease in selling prices during fiscal year 2025 compared to fiscal year 2024, primarily due to the continued increase in the supply of frozen and fresh poultry in Saudi Arabia. Revenues from the feed and animal health sector decreased by 3.4 % year-on-year to SAR 434.8 million in fiscal year 2025. This is mainly due to lower demand for equipment and medicines as the agricultural market slows down due to temporary challenges, despite sales of feed supplements growing by 12.9 % year-on-year.

The restaurant sector achieved strong growth for the second consecutive year, with revenues reaching SAR 200.5 million, a 41.8 % year-on-year increase, driven by continued expansion of the restaurant network throughout the year. In the fourth quarter of 2025, revenues increased by 30.3 % year-on-year to SAR 55.6 million, supported by the opening of seven new outlets during the quarter and improved performance of existing outlets on a like-for-like basis. The total number of operational outlets reached 95 as of December 31, 2025, distributed across 87 branches in Saudi Arabia, 4 in Bahrain, and 4 in Kuwait.

Income statement analysis

The cost of sales increased by 7.4 % year-on-year to SAR 2,049.7 million in fiscal year 2025, primarily due to higher fuel and utility costs, increased depreciation from new facilities, and additional costs associated with the expansion of the Popeyes restaurant network. These increases were partially mitigated by improved operational efficiency and cost-cutting measures. Consequently, gross profit decreased by 7.7 % year-on-year to SAR 603.8 million, and the gross profit margin declined to 22.8 % compared to 25.5 %. This was mainly attributed to continued price pressures resulting from increased poultry supply in the Saudi market, as well as start-up costs associated with new assets in the fourth quarter.

Operating profit before bank charges, zakat, depreciation and amortization amounted to SAR 313.5 million for fiscal year 2025, down from SAR 360.5 million in the previous year, while the operating profit margin before bank charges, zakat, depreciation and amortization decreased to 11.8 % compared to 14.1 % in fiscal year 2024.

The company recorded a net loss attributable to shareholders of SAR 18.8 million in fiscal year 2025, compared to a net profit of SAR 95.8 million in fiscal year 2024. Of the total net loss of SAR 18.8 million, the agricultural business segment, which includes fresh poultry, feed products, and animal health, generated a net profit of SAR 37.0 million, while the restaurant segment recorded a net loss of SAR 55.9 million. Popeyes' performance reflects higher operating costs and costs associated with starting new assets, as well as lower revenues at some outlets. This year-on-year decline is attributed to higher fuel and utility costs, increased distribution costs, continued price pressures in the fresh poultry segment, higher financing costs, and costs associated with starting new facilities, including depreciation. As capacity utilization increases, financing costs and other fixed costs are expected to gradually decrease due to increased production volume, improved cash flow generation, and continued debt reduction. The development is fully focused on delivering higher value to customers and achieving operational excellence, as the company moves from building new advanced capabilities and technologies to delivering greater value from its integrated platform.

Capital expenditures reached SAR 418.3 million for fiscal year 2025, a 40.4 % year-on-year increase, as the company sought to bolster its growth and expand its production capacity. This year saw the commissioning of advanced processing plants designed to enhance operational efficiency and reduce unit costs. The opening of the state-of-the-art poultry products plant in Al Majmaah (Al Majmaah 2) and the advanced feed mill in Ad Dahnah, under the patronage of the Ministry of Environment, Water and Agriculture, represents a significant milestone in the company's integrated platform expansion strategy.

Future outlook

The development begins the 2026 fiscal year with an updated strategic framework and four clearly defined strategic priorities that reflect a focused restructuring aimed at enhancing performance, improving profitability, and achieving sustainable value for shareholders .

1. The development strategy focuses on enhancing customer-centric business excellence and value-added growth, with a greater emphasis on high-margin products, customers, and channels. This is expected to contribute to increased margin-enhancing growth through continued expansion into value-added products and processed foods, deepening strategic partnerships with key customers, and selective expansion into new geographies and related areas to promote diversification and mitigate concentration risks . For Popeyes , priority initiatives include enhancing brand awareness, improving local menus, and elevating the guest experience, all supported by a continued focus on operational excellence across the network.
2. The company continues to strengthen its operational foundations and enhance its asset base , while leveraging its advanced capabilities and integrated platform. The capital expenditure plan for the year focuses on maximizing the value of the company's hybrid asset model, with a continued emphasis on improving efficiency, reliability, and operational discipline across the value chain, alongside proactive improvement actions through the redeployment or rationalization of underperforming assets to maximize value .
3. Maintaining a disciplined approach to capital management remains a key development priority, with investments carefully directed toward generating returns. This includes selective, performance-based investments that enhance cash flow generation and deliver sustainable shareholder value. The company will focus on upgrading critical assets and selectively expanding production capacity where returns are attractive, while maintaining a strong balance sheet and optimizing financing costs to safeguard cash flow and investor returns .
4. Digital technologies, data, and human resources are key enablers for implementing the development strategy, particularly as the company seeks to accelerate investment in automation and modernize its systems to enhance productivity, flexibility, and scalability. The company will continue to develop its organizational capabilities through leadership development, succession planning, and the digitization of human resources, ensuring the platform, talent, and culture necessary to deliver sustainable long-term value .

Environmental, social and governance commitments

The company continues to develop its strategic and integrated approach to sustainability, based on the principle of inclusive leadership through a "give, win, and sustain" model. The company's environmental, social, and governance (ESG) framework remains robust, guided and overseen by the Board's ESG Committee and supported by a cross-functional committee at the management level to ensure alignment between strategy and implementation plans. The company remains focused on making progress in key areas aligned with Vision 2030 and the UN Sustainable Development Goals .

The company’s journey in environmental, social, and governance (ESG) practices reached an advanced stage of institutional maturity in 2025 , reflected in enhanced disclosures, improved performance, and independent recognition from global rating agencies. Over the past three years, the company has achieved a gradual improvement in MSCI ’s ESG ratings, rising from “ B ” in 2023 to “ BB ” in 2024 , and then to “ BBB ” in 2025 , marking a second consecutive year of upgrades and solidifying its position among a select group of global food companies that adopt advanced ESG practices. This trajectory underscores the integration of ESG considerations into the core of the company’s strategy, risk management framework, and capital allocation decisions. On the environmental front, the company is conducting a comprehensive inventory of carbon emissions across its various operations to establish an accurate benchmark database that will enable efficient emissions management and the setting of future targets. In parallel, the company is making significant progress in its carbon reduction plan by switching to liquefied petroleum gas (LPG), testing solar energy solutions, and assessing opportunities to utilize geothermal energy to reduce reliance on conventional fuels and enhance energy efficiency. These initiatives build upon previous efforts to improve diesel consumption, and together they are expected to contribute to a substantial reduction in greenhouse gas emissions and operating costs in the long term.

Furthermore, the company continues to invest in innovative feed alternatives and modern agricultural technologies to improve feed manufacturing efficiency, reduce pressure on land and water resources, and support more sustainable production in the poultry sector. The company’s large-scale program to plant one million trees has reached 573,000 trees across the Kingdom, while the operation of the water treatment plant in Al Majma’ah – with a production capacity of 6,000 cubic meters per day – supports the company’s circular water use strategy, as treated water is now being used to irrigate moringa trees in the surrounding areas. These initiatives collectively reinforce the company’s environmentally positive approach and align with national priorities related to climate and food security .

The company continues to receive recognition and accolades in the region for its leadership in sustainability and technology. Mr. Zulfiqar Hamdani, the company’s CEO, was named to the “Forbes Middle East Sustainability Leaders 2025” list, highlighting his role in leading the company’s transformation towards lower-carbon and more resource-efficient operations. The company’s farm automation project also received the “Middle East Technology Excellence 2025” award in the agricultural technology category, underscoring the company’s focus on leveraging advanced technologies to enhance productivity, animal health, and biosecurity across the entire value chain.

Looking ahead, the development sector continues to focus on enhancing its impact by pursuing efforts to reduce carbon emissions, expand renewable energy solutions, develop innovative technologies in feed and agriculture, promote animal health practices, and innovate pioneering sustainable packaging solutions. These priorities aim to create long-term value for stakeholders and contribute to building a more resilient and sustainable food system in Saudi Arabia and the wider region .

About the Food Development Company

Established in 1962, Al Tanmia Food Company is a leading player in the fresh poultry, processed meat, animal feed, animal health, and restaurant sectors, and is listed on the Saudi Stock Exchange (Tadawul). Notably, Al Dabbagh Holding Group is a founding partner and shareholder in Al Tanmia Food Company. Al Tanmia's highly efficient, integrated business model encompasses food production, processing, and distribution operations in Saudi Arabia, the UAE, Bahrain, Oman, Jordan, and Kuwait. As of September 30 , 2025, Al Tanmia operated 157 farms, seven hatcheries, five feed mills, and six primary processing plants. Through its joint ventures, it also operates four manufacturing facilities. The company distributes its products through a network of its own distribution centers, wholesalers, retailers, and food service outlets, as well as direct online sales. Sustainability is a core principle for Al Tanmia, and its initiatives include planting one million trees, irrigated with recycled water from its facilities, and converting waste into compost. For more information, please visit the website: www.tanmiah.com

Forecasts and future data

This statement contains forward-looking statements. A forward-looking statement is any prediction that is not based on historical facts or events and can be identified by the use of phrases and words such as “estimates,” “aims,” “anticipated,” “estimates,” “likely,” “believes,” “may,” “estimates,” “assumes,” “projections,” “intends,” “sees,” “plans,” “possible,” “expected,” “projects,” “should,” “knows,” “will,” or, in each case, its negation, or other similar expressions intended to identify the prediction as forward-looking. This applies, in particular, to predictions that include information about future financial results, plans, or forecasts concerning business and management, growth or profitability, general future economic and regulatory conditions, and other matters affecting the company.

The forward-looking statements reflect the current views of the Company's management ("Management") on future events, which are based on management's assumptions and involve known, unknown, and uncertain risks and other factors that could cause the Company's actual results, performance, or achievements to differ materially from any future results, or from the Company's performance or achievements expressed or implied in these forward-looking statements. The realization or non-realization of these assumptions could cause the Company's actual financial condition or results of operations to differ materially from these forward-looking statements, or the predictions to be inconsistent, whether expressed or implied. The Company's business is subject to a number of risks and uncertainties that could cause the forward-looking statements, estimates, or forecasts to differ materially from reality. These risks include fluctuations in raw material prices, the cost of labor needed to carry out the activity, the company’s ability to retain key elements of the work team, competing successfully amidst changing political, social, legal and economic conditions, whether in the Kingdom of Saudi Arabia or on the global economic level, developments and trends in the healthcare sector on the regional and international scene, the repercussions of war and the risks of terrorism, the impact of inflation, changes in interest rates, currency exchange rate fluctuations, and the management’s ability to act accurately and quickly to identify future risks to the company’s activities with risk management.

-I finish-

#Company Data

Disclaimer regarding the content of press releases
The content of this press release is provided by a third-party provider. We do not assume any responsibility for, nor do we have any control over, such content. This content is provided on an "as is" and "as available" basis and is not edited in any way. Neither we, nor our affiliates, will be liable for the accuracy, endorsement, or completeness of any opinions, views, information, or materials contained in this content.
This press release is provided for informational purposes only; the content does not constitute legal, investment, or tax advice, nor does it offer any opinion on the suitability, value, or profitability of any particular portfolio or investment strategy. Neither we nor our affiliates will be liable for any errors or inaccuracies in the content, or for any actions you take based on that content. You expressly agree and acknowledge full responsibility for your use of the information contained in this press release.
To the extent permitted by applicable law, Refinitiv, its parent company, subsidiaries, affiliates, relevant shareholders, directors, officers, employees, agents, advertisers, content providers, and licensors (collectively, the 'Refinitiv Parties') shall not be liable (jointly or severally) to you for any direct, indirect, consequential, special, incidental, punitive, or exemplary damages; This includes, but is not limited to, losses of profits, savings, or revenues, whether due to negligence, tort, contract, or other theories of liability, even if the parties to Refinitiv were advised of the possibility of any such damages or losses occurring or actually anticipated them.