Almunajem Foods, Balady Poultry sign seven-year processing and distribution agreement
Both companies disclosed governance links among board members alongside the transaction.
SAUDI ARABIA – Saudi Arabia’s Almunajem Foods Co. and Balady Poultry have signed a seven-year processing and distribution partnership, according to separate disclosures released to the Saudi stock exchange.
The agreement provides for Balady Poultry to handle the production and packaging of poultry products sold under both companies’ brands, with supplies destined for the local Saudi market and overseas customers.
Almunajem Foods said the commercial framework is based on a profit-sharing arrangement, while all marketing and distribution responsibilities will be managed by Almunajem.
Balady Poultry confirmed the transaction through a nearly identical exchange filing, outlining the same scope, duration, and operational structure.
Neither party disclosed a financial value for the agreement, with Almunajem stating that no specific monetary consideration has been set.
The transaction includes related-party disclosures, as Almunajem managing director Thamer Abdulaziz Abanumay holds an indirect interest through his position as vice chairman of Balady Poultry’s board.
Almunajem also reported that board member Abdullah Omar Bawazir has a similar indirect interest linked to his role at Balady Poultry.
Strategic context and governance
The companies said the partnership is intended to expand the presence of locally produced poultry products in Saudi Arabia while improving coordination between production and distribution operations.
According to the filings, the structure reflects a producer-led model by Balady Poultry paired with Almunajem Foods’ marketing and logistics network to pursue shared objectives in the poultry sector.
The announcement follows recent leadership changes at Almunajem Foods, which disclosed in November that long-serving chief executive Bin Abdulaziz Abanumay would step down at the end of December after eight years in the role while remaining on the board.
Ali Hasan El Zain assumed the position of chief executive at Almunajem Foods from 1 January, as previously announced by the company.
Financial performance
Almunajem Foods reported third-quarter revenue of US$217.6m for the three months ended 30 September, representing a 2.2% increase compared with the same period last year.
Operating profit for the quarter declined 5.2% to US$9.7m, while net profit fell 21.7% to US$8.5m, reflecting pressure on margins despite higher sales volumes.
For the first nine months of the year, Almunajem posted revenue of US$669.3m, down 0.5%, with operating profit dropping 46% to US$31.5m and net profit declining 52% to US$27.4m.
Balady Poultry reported third-quarter revenue of US$58.4m, up 0.5%, while revenue for the nine-month period fell 4.9% to US$169.1m.
The poultry producer’s operating profit declined sharply to US$2.4m for the quarter and US$7.0m year to date, while net profit dropped to US$2.0m for the quarter and US$6.8m for the nine-month period.
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