Alamar reappoints Ibrahim AlJammaz as Chairman, Asim AlJammaz as Vice Chairman

Logo of Alamar Foods Co.

Alamar Foods Co. said its shareholders approved the election of the board of directors for a three-year term that started on April 11, 2026.

In a statement to Tadawul, the company attributed the accumulated losses primarily to inventory discrepancies totaling SAR 28.67 million discovered at one of its branches, which had been previously disclosed, as well as expected credit loss (ECL) provisions on certain trade receivables.

Amwaj International said it recognized provisions totaling SAR 47.12 million during 2025, the bulk of which related to receivables associated with the affected branch.

It also booked provisions for slow-moving and obsolete inventory, in addition to impairment charges on certain inventory items.

Combined with other operating and financing factors, these items resulted in a net loss of SAR 87.80 million in 2025.

The company said it continues to pursue legal and regulatory measures to collect outstanding receivables and recover amounts related to the inventory discrepancies at the affected branch, while following up on the related litigation to safeguard its rights and recover any amounts awarded.

Amwaj International said it has strengthened its credit management and collection policies, reassessed customer credit limits, and improved working capital and inventory management.

The company also tightened operating and administrative expenses and enhanced the efficiency of its branches and sales channels to reduce losses, improve profitability and cash flows, and preserve its financial position.

The board of directors will continue to oversee the implementation of the corrective action plan, assess its impact on the company's financial results, and disclose any material developments in accordance with applicable regulations.

The company noted that it will be subject to the Capital Market Authority's (CMA) procedures and instructions applicable to listed companies whose accumulated losses reach 20% or more of their capital.

It also said that part of the reported financial impact relates to accounting provisions and estimates recognized under International Financial Reporting Standards (IFRS) and therefore does not necessarily represent actual cash losses or cash outflows.

Amwaj International added that it has not recognized any asset or potential recovery related to claims arising from the inventory discrepancies, as the relevant legal proceedings remain ongoing and their outcome depends on uncertain future events.

Any amounts recovered will be recognized once the applicable accounting recognition criteria are met, which could positively impact the company's financial results in the period of recognition.

According to data available with Argaam, Amwaj International reported a net loss of SAR 87.8 million in 2025, compared to a net profit of SAR 6.4 million a year earlier.