Balady, Almunajem sign deal for poultry product marketing

Under the agreement, Almunajem will market and distribute the covered poultry products in markets within and outside Saudi Arabia.

In two separate statements to Tadawul, the companies said the seven-year agreement is expected to have a positive financial impact on their results over its duration.

Almunajem clarified that the agreement has no specified value.

Balady will produce and package the poultry products, while Almunajem will market and sell them within and outside Saudi Arabia under the trademarks owned by Balady and Almunajem under a profit-sharing arrangement, the statements added.

The companies said that the agreement aims to enhance sustainable joint growth and increase the market share of local products in the Saudi market by improving quality and operational efficiency.

The partnership reflects strategic integration between Balady, the producer, and Almunajem, the marketer and distributor, to achieve shared objectives in the poultry sector.

There are related parties to the deal, including Thamer Abanmi, managing director of Almunajem and deputy chairman of Balady, as well as Abdullah Bawazir, a board member of Almunajem and Balady.