Almunajem CEO: Demand steady for most products, gradual improvement seen by Q3-end

Thamer Abanumay,CEO of Almunajem Foods Co.

Demand for most food products remains relatively stable, with continued growth in some segments, while prices are generally steady due to improved supply chain efficiency and a broader supplier base, said Thamer Abanumay, CEO of Almunajem Foods Co.

Abanumay told Argaam in a phone interview that he expects demand to gradually improve by the end of the third quarter as the summer holiday ends and schools reopen.

He said the main challenge in the frozen poultry market is local oversupply, alongside a segment of consumers preferring fresh chicken, cuts, and processed products.

Commenting on financial results, Abanumay noted that the local oversupply has weighed on profit margins in both red and white meat segments, particularly poultry, which has been under price pressure since late last year. Operating expenses also rose due to the establishment of a subsidiary for model logistics solutions and the company’s entry into the fresh chicken segment earlier this year.

All regions saw demand growth, especially the central and western areas, he added.

Revenue fell 3.5% as red and white meat sales declined, with retail frozen chicken prices dropping 14% year-on-year, despite a 3.2% rise in total sales volumes and a 10% increase in other product categories.

The financial impact of raising Almunajem’s stake in Balady Poultry Co. to 40% reached SAR 4.2 million in Q2. Abanumay said the greater benefit will come from the strategic partnership in the fresh chicken segment, delivering value-added products to consumers.

According to Argaam data, Almunajem Foods’ H1 2025 net profit fell 60% to SAR 71 million from SAR 177.8 million a year earlier, while Q2 profit dropped 51% to SAR 31 million.