Nofoth approves strategic plan for 2026–2030

Logo of Nofoth Food Products Co.

Nofoth Food Products Co. said its board of directors approved strategic plan for the 2026–2030 period.

In a statement to Tadawul, the company said the plan aims to achieve sustainable growth and maximize shareholder value through improving operational efficiency, diversifying revenue streams, and strengthening its position in the food sector.

It seeks to support revenue growth and sustainably improve profitability by developing its core business operations.

The plan is built around six key pillars:

First: Strengthening the core business and investing in R&D

Continuing to invest in research and development capabilities to drive innovation and product development across the pastries and appetizers segments. The company also aims to maintain a steady stream of new product launches, with a target of at least 25 innovative products, helping it keep pace with customer preferences and strengthen its competitive position.

Second: Expanding in central areas of Makkah and Madinah

The company plans to expand into prime central locations in Makkah and Madinah, gradually increasing its total number of branches to around 15 during the plan period.

The expansion supports Saudi Vision 2030's goals of enhancing services for pilgrims and improving the Hajj and Umrah experience, in line with the anticipated growth in visitor and pilgrim numbers, subject to regulatory approvals and commercial feasibility.

Third: International expansion and building a regional presence for the company’s national brands

The company plans to explore expansion outside Saudi Arabia into selected regional and international markets through multiple entry models, including exports, franchising, and branch openings, based on the results of commercial and operational feasibility studies. This strategy aims to leverage the appeal of Saudi food products among targeted consumer segments and strengthen the presence of national brands abroad.

It also includes adapting products to meet the requirements of each market and participating in specialized international food exhibitions.

Target markets under evaluation include GCC countries and Iraq. The company may establish a regional network of up to approximately 20 branches during the plan period, subject to feasibility studies, market conditions, and the required regulatory approvals.

Fourth: Strategic acquisitions

The company takes a selective approach to assessing potential acquisitions in sectors that complement its existing operations, particularly healthy and balanced food, specialty coffee, and hospitality and catering services.

The focus is on opportunities with strong profitability, clear operational synergies, and promising growth prospects. The company emphasized that such transactions will only be pursued after completing the necessary studies and evaluations and obtaining the required regulatory approvals.

Fifth: Entry into new food segments

The company aims to diversify its product and brand portfolio by exploring opportunities to enter attractive food categories such as chocolate and traditional Eastern sweets.

This approach relies on an operating model that leverages the company’s existing infrastructure and established sales and distribution channels, aiming to improve entry efficiency and reduce additional operational requirements.

The implementation of these initiatives is subject to feasibility studies, market conditions, and the necessary regulatory approvals. They may not be executed if suitable economic and regulatory conditions are not met. This direction supports operational growth and diversifies revenue streams.

Sixth: Enhancing operational efficiency

The company plans to study and implement initiatives to improve supply chain and inventory management. It also aims to adopt digital and technological solutions, including artificial intelligence and automation, to enhance operational efficiency, cost control, and profitability.

The company emphasized that the statements in this plan represent forward-looking strategic intentions that depend on market, economic, and regulatory conditions. Actual results may differ from expectations, and the company will disclose any material developments related to the plan in accordance with applicable regulations and requirements.

Nofoth expects the financial impact of this plan to emerge gradually from 2026 through the end of the plan in 2030.

It also noted that any material impacts will be announced as soon as they are realized.