Almunajem expects continued strong demand during Hajj, upcoming projects

Almunajem Foods Managing Director Thamer Abanumay

Almunajem Foods Co.’s Managing Director Thamer Abanumay expects demand for its products to continue, supported by the Hajj season, an expanding customer base and steady growth in fresh poultry sales.

Operations at its Jeddah projects are likely to begin by the end of Q2 2026, he told Argaam.

Abanumay explained that the projects include a new food factory with a production capacity of 35,000 tons annually for certain poultry, red meat, seafood, and cheese products, in addition to a logistics warehouse with storage capacity exceeding 60,000 pallets. He expected the financial impact to be reflected during the second half of 2026.

Commenting on Q1 2026 financial results, Abanumay said that higher net profit reflects a noticeable improvement in operational efficiency and profit margins, despite a slight decline in revenue. He pointed to the launch of several initiatives aimed at improving operational efficiency and increasing profitability in some key categories, as well as improved pricing.

Meanwhile, the decline in revenue was mainly due to lower sales volumes in some categories, such as whole chicken and frozen cuts, as well as potatoes and chilled red meat, as a result of challenges faced by the local market that relatively affected sales volumes during the first quarter, he said.

Abanumay noted that margin improvement was driven by several factors, most notably a better sales mix and more efficient cost and supply chain management.

“The categories of red and white meat, fruits and vegetables, and dairy products witnessed significant growth in profitability due to an improved sales mix and operating margins across most regions of the Kingdom, especially the Central Province in both the retail and food services sectors,” he stated.

Speaking on the acquisition of the rights to the “Doux” and “Supreme” brands in Saudi Arabia, the Gulf countries, and Yemen, Abanumay said the deal has been successfully completed, adding that the company is working to register the trademarks in the second quarter.

The acquisition is expected to bolster Almunajem’s growth, expand its brand portfolio, and boost its market share in the poultry sector across fresh and frozen whole chicken and processed and cut products. The move will likely support revenues and profit margins over the medium and long term, Abanumay said.

He noted that the “Doux” brand has been one of the leading poultry brands in the Kingdom for more than 50 years.

Furthermore, the acquisition is expected to positively impact the value of the company’s investment in Balady Poultry Co., he added.

As for the latest developments regarding Almunajem’s discussions with Al Jouf Agricultural Development Co. on the possibility of becoming a strategic investor, Abanumay explained that discussions and feasibility studies are ongoing, which is expected to be finalized soon.

According to Argaam data, Almunajem’s profit rose to SAR 97 million in Q1 2026, up from SAR 40 million a year ago.