Mazen Badawood, CEO of Al Jouf Agricultural Development Co.
Al Jouf Agricultural Development Co. seeks to balance growth and profit margin growth, which helps it distribute dividends, CEO Mazen Badawood told Al Ekhbariya TV.
Badawood stressed that companies should focus during the current period on achieving greater growth in light of the strong economic performance witnessed by the Kingdom under Vision 2030.
Commenting on nominal value reduction, the CEO said the move is important for the companies that have clear strategic growth plans in the coming years, which is reflected positively in their performance and helps them attract more investors.
The stock split reduces shares price; hence a large number of investors can invest in shares of high-growth companies. In addition, the move boosts liquidity by increasing the number of shares available for trading.
Al Jouf Agricultural is distinguished from other agricultural companies by the clarity of its strategy compared to the other companies that rely heavily on the production of animal feed. These companies were affected by the decision to stop production locally several years ago and did not take prior steps to exit this activity.
As for Al Jouf Agricultural, it earlier took steps to exit the local feed production activity, which represented about 80% of agricultural companies’ profits, Badawood said.
He added that the Tadawul-listed firm currently has several products that contribute to its earnings, and these products will be expanded to reduce the company's dependence on one product.
Further, Al Jouf Agricultural is the largest producer of organic olive oil in the world, and one of the largest producers of wheat and potatoes in the Kingdom.
The company should develop these products to maintain its leadership, the CEO concluded.
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